The dispute between the Chinese supervisors and the Chinese technology company and Alibaba holding Ant Group seems to be coming to an end. China fined the company 7.12 billion yuan (900 million euros), the Chinese central bank announced on Friday in Chongqing. This would possibly put Ant through the years of regulatory hassle, opening up prospects for growth and the previously planned IPO for Ant. This was stopped by the supervisors in 2020. Investors reacted with relief and the price rose.
According to the Chinese central bank, the background to the penalty is violations in the areas of payment transactions, settlement, anti-money laundering and the distribution of funds. In addition to Ant, other financial companies also have to pay fines, including a financial platform from the Chinese technology group Tencent. No further details were initially given in this regard. The companies have solved most of the problems, the Chinese central bank said in a statement.
Alibaba shares rose more than three percent on the Hong Kong stock exchange. The notes are also listed in New York, where they were more than 3 percent higher before the market on Friday than on Thursday’s closing price. Alibaba holds a third of Ant’s shares. Alibaba’s stock market value has lost over half a trillion euros since regulators laid eyes on Ant’s plans. (dpa)