China asks Ant Group to rectify financial violations in latest crackdown on Ma

China’s central bank asked payments giant Ant Group Co Ltd to rectify financial regulatory violations, including in its credit, insurance, and wealth management businesses, and overhaul its credit rating business to protect personal information.

The announcement by People’s Bank of China (PBOC) Vice Governor Pan Gongsheng is the latest blow to Ant Group's founder and controlling shareholder Jack Ma.

According to Pan, should set up a separate holding company to ensure capital adequacy and regulatory compliance. He added that Ant Group should be fully licensed to operate its personal credit business, not engage in unfair competition, and be more transparent about its third-party payment transactions.

Officials from the PBOC and other Chinese banking, securities and foreign exchange regulators met with Ant representatives on Saturday, where they pointed issues with Ant, including its defiance of regulatory demands, illegal regulatory arbitrary, poor corporate governance, the use of its market advantage to squeeze out competitors and harming consumers’ legal interests.

Ant said it would fully implement regulatory requirements through a “rectification” working group.

Last month, Chinese regulators abruptly suspended Ant’s blockbuster $37 billion initial public offerings in Shanghai and Hong Kong, days after the country’s antitrust authorities launched a probe into Ma’s e-commerce conglomerate Alibaba Group Holding Ltd.

Ma had publicly criticized China's regulatory system in October for stifling innovation.