Topline
Ant Group—an Alibaba affiliate founded by billionaire Jack Ma, a recent target of Chinese regulators—was fined $985 million by the People’s Bank of China on Friday, according to China’s central bank, concluding a probe into the company after its initial public offering was pulled by regulators two years earlier.
China fined Ant Group nearly $1 billion on Friday.
Key Facts
The People’s Bank of China said the fines were in response to “violations of laws and regulations” related to financial consumer protection, payment and settlement business and anti-money laundering requirements.
Ant Group said in a statement it would “comply with the terms of the penalty,” adding the company has “completed the related work on the rectification” required by China’s financial regulators.
The People’s Bank of China, which also fined Tencent Holdings, noted both companies had fixed “most of the outstanding problems” identified by regulators.
Shares for Alibaba—which owns a 33% stake in Ant Group—rose over 6% as of 10 a.m. on Friday.
Louis Tse Ming-Kwong, managing director of Hong Kong-based Wealthy Securities, told the South China Morning Post—a Hong Kong publication owned by Alibaba—the penalties could “pave the way for Ant to consider listing again.”
Key Background
A probe into Ant Group—founded by former Alibaba CEO Jack Ma—was initiated in 2020 as the Chinese government cracked down on China’s private sector, and its growing group of powerful billionaires. Chinese financial regulators halted Ant Group’s IPO launch in 2020, which was valued at a record-setting $34.5 billion. Ma disappeared from the public eye later that year, after he criticized the Chinese government’s regulatory conditions. He resurfaced in November, according to a Financial Times report, which indicated Ma was now living in Tokyo with his family. Ma announced in January he would cede control of Ant Group. Other Chinese companies have faced large fines from regulators, including Meituan and Didi, which were hit with penalties of $534 million and $1.19 billion, respectively.
Forbes Valuation
Ma is the 66th richest person in the world with a net worth of $23.6 billion, according to our latest estimates. Once China’s richest person, he is now the seventh-wealthiest.
Further Reading
China Ends Probe Of Ma-Backed Ant With $984 Million Fine (Bloomberg)
China Hits Alibaba Affiliate Ant Group With $985 Million Fine For Violation Of Various Regulations (CNBC)
Source: https://www.forbes.com/sites/tylerroush/2023/07/07/china-fines-jack-mas-ant-group-nearly-1-billion/