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Alibaba, the Chinese e-commerce giant, recorded a sharp drop on the Hong Kong Stock Exchange on Tuesday. The regulatory noose is tightening on Jack Ma and his Alibaba group and this time it is the turn of Ant Group, the giant’s online payment subsidiary. Beijing asks state-owned companies to review their economic relations with Ant Group.
For several months, Ant Group, the online payment subsidiary ofAli Baba, is in the crosshairs of the communist power. Last November, Beijing put a halt to its IPO.
Then, the Chinese authorities attacked its Alipay mobile application, which has nearly a billion users. Alipay was forced to restructure because it was becoming too powerful in the face of state banks. Consumer credit services have therefore been removed from the platform. Alipay now focuses on online payment.
Increased surveillance of private companies
Today, the pressure from the Chinese authorities is stepping up a notch. Beijing is asking state-owned companies to review their agreements, and their economic relations, with Ant Group. This is another blow for Alibaba. The e-commerce giant has already sufferedrecord finetwo billion euros, from the Chinese regulator.
This takeover shows the will of the Communist Party to monitor more, private companies. And especially in the Internet sector, where giants have emerged in recent years.
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