In China, the investigation aimed at unraveling the influence of Jack Ma’s company, Ant Group, now includes an additional entity. In addition to the antitrust body, and the one responsible for enforcing the good principles dictated by the Party, it is the anticorruption authority that gets involved. It must examine the links maintained with national companies and banks.
Ant Group still more under pressure
For more than a year, the largest fintech in the Middle Kingdom has been carefully scrutinized and studied. Considered too opaque, the government exerts constant pressure on Ant Group. He won his case in September by obtaining his consumer credit data. Earlier there was talk of the company creating a shared branch with two state-owned enterprises. If it was only a question of operational practices of Ant Group and Alipay, for the Party, it is now a question of revealing the extent of its influence on the banking system, companies, and the top leaders of the country.
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The Chinese Central Commission for Discipline Inspection (CDDI) launched an investigation last summer into Zhou Jiangyong, head of the Communist Party of Hangzhou, the city where Alibaba and Ant Group sit. Many local and national media then implied his closeness to Jack Ma and his businesses. Another suspected insider trading, connecting the Party member and a company in which Ant Group had invested. Zhou Jiangyong was quickly fired.
He was indicted last week for bribery. In particular, he allegedly received considerable bribes. For the moment, the elements of the lawsuit to come do not mention any company of Jack Ma.
However, seeing the anti-corruption authority get involved in the investigation does not bode well for Ant Group. Too impertinent, the company has fueled the motivation of the Chinese government to take over, with the authority that we know, the digital sector.