Jan. 5, 2021 - Epoch Times
05:40
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| Time | Text |
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| Ant Group, a subsidiary of China's e-commerce giant Alibaba, has recently been repeatedly summoned to a meeting with the four major financial regulators of the Chinese Communist Party. | |
| The central bank of the CCP has also come forward to accuse Ant Group of arbitrage violations and asked the group to rectify them. | |
| The central bank said that Ant Group is now setting up a financial holding company and is subject to official financial supervision. | |
| Ant Group is planning to set up a financial holding company to incorporate a number of its lucrative financial businesses, in compliance with regulatory requirements by the CCP authorities, according to Bloomberg. | |
| These businesses, which could be regulated by the government, include financial services, consumer loans, insurance, payments, and online lender MyBank. | |
| On December 29th, the CCP's central bank told Reuters that Ant Group, which controls a number of financial institutions, such as securities and insurance, should establish a financial holding company in accordance with the law and should bring its financial activities under full official supervision. | |
| Ant Group is currently working on a plan to set up a financial holding company in accordance with the financial control regulations. | |
| Hello. | |
| Either Frank Ma or Alibaba, the fact is that they are under pressure from the CCP, and financial services Alipay and Taobao are all subsidiaries of the Alibaba Group. | |
| They actually have more or less access to some banking business, which touches the cheese of the CCP and the interest of state-owned banks. | |
| That's why they released such a restriction. | |
| According to industry analysts, Ant Financial Services business may be subject to more capital restrictions, and investors will reassess the regulatory risk faced by Chinese internet companies. | |
| The Chinese economy is collapsing, the CCP is broken, and it has never treated these private enterprises as partners they can trust. | |
| Instead, it takes them as a fat piece of meat on a chopping block, ready to cut at any time. | |
| A few days ago, the CCP's central bank, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, Foreign Exchange Bureau and other financial authorities jointly summoned Ant Group for a meeting. | |
| Pan Gongsheng, Vice President of the Central Bank, also criticized Ant Group for flouting regulatory requirements, violating regulatory arbitrage, taking advantage of its dominant market position to exclude fellow operators, undermining consumers' legitimate rights and interests, and made a number of rectification requests to the group. | |
| The CCP has always considered finance as its exclusive domain and a necessary means to control society and the economy. | |
| It is also a mainstay of its state-owned system. | |
| Under such circumstances, it has to put a collar around the neck of Internet finance by punishing Ant Group so as to maintain the main and dominant position of state-owned financial institutions. | |
| Suiqi, a China studies scholar, believes that the so-called economic measures of the CCP have their political meaning behind them. | |
| Because Jack Ma is not very obedient, they immediately stopped the listing of Ant Group, and then supervised and punished it in order to tell Jack Ma to behave himself. | |
| Now for Jack Ma, he's an iconic figure of China's economy, so the punishment for him will be a warning to others, a renovation of the whole internet finance and private big business groups. | |
| It's like warning them not to cross the line to dredge for money. | |
| The CCP's series of crackdowns on private enterprises has had a chilling effect. | |
| In a review of the company's 30 years of entrepreneurship and development, Zhang Jindong, chairman of China's Suning Group, said on the 26th, Suning should always be a responder to the call of national policies, and all its developments should serve national policies. | |
| He also said, smaller enterprises are personal, but larger ones are social and national. | |
| A Motel company in Guizhou has donated many of its shares to the CCP's state-owned enterprise assets company in the province, and a lot of private capital voluntarily handed over its wealth to the CCP, something we also saw in the 1950s when the Communist regime's second proletarian revolution was on the way. | |
| Based on the Ant Group's prospectus, in 2019, Alipay was used by more than 1 billion users and 80 million merchants in China, with 111 trillion yuan in transactions a year, accounting for 48% of all electronic payments in the country. | |
| It was followed by WeChat, which accounted for 33.6%. | |
| The third-ranked, UnionPay, only accounted for 7.2%. | |
| In 2019, Ant Group as a whole earned more than 17.2 billion yuan. | |
| It is believed that the purge of Ant Group is partly due to its large and rapid expanding financial business, which has swallowed up the interests of the CCP's banks and poses a threat to the centralized rule of the party. | |
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