Shares of Chinese tech giant Alibaba recorded a drastic decline of more than 5% in a trading session in Hong Kong today after reports on Ant Group were re -examined.
Meanwhile, Beijing plans to separate Alipay Ant Group which is the largest payment app in China with more than 1 billion users.
Ant was also forced to hand over consumer data supporting his loan decisions to a new credit scoring firm that would be partially government -owned.
The regulator has ordered Ant to separate the Alipay business from the Huabei as well as Jiebei loan businesses and it wants the credit business to be divided into independent applications.
The business empire of Jack Ma, co -founder of both Ant Group and Alibaba has been hit by several high -profile regulatory measures and this is not the first time it has been targeted by the Chinese government.
In April, Alibaba was fined $ 2.8 billion over monopoly problems and regulators also launched a record $ 37 billion Ant Group stock market launch.
According to the Financial Times, Ant will not be the only Chinese online lender affected by the new rules.
Chinese regulators also asked Ant to conduct a thorough business inspection including restructuring the holding company into a financial holding firm.
In the past, Chinese regulators have targeted several other internet giants covering competition and privacy issues as well as user data and cryptocurrency.
