Oyogist has learned that Alibaba Shares noticed a significant decline earlier today, following plans by Chinese government to clamp down on Jack Ma’s Alipay.
Alipay, is so far the world’s “largest” mobile payments platform, emassing over 1 billion users.
Meanwhile, Regulators in China are seeking to exert more control over domestic tech giants, instructing the Ant Group-owned platform to separate the back end technology for two of its popular loan businesses, Huabei and Jiebei—from the rest of Alipay and bring in shareholders from outside.
If this new plan goes underway, ant will no longer be able to build or assess borrowers’ creditworthiness “Independently” thus requesting the information from the partly government-owned credit scoring company.
The move may severely curtail the growth of the two lending businesses which overtook Alipay’s main payments processing business in 2020, accounting for 39% of all of Ant Group’s revenues.