In a move to end a years-long restriction on marquee technology firms, Chinese regulators are expected to lower the fine on Ant Group, cited a Reuters source-based report.
According to the report, sources have mentioned that Chinese regulators are looking to lower the fine by a quarter to $700 million from the initially planned $1 billion. The considered fine now amounts to 5 billion yuan ($728 million), informed sources to Reuters.
The lowering of the fine would secure Ant Group’s long-awaited financial holding company license, seek growth, and finally revisit its plans for a market debut. Moreover, if the decision comes to effect it will also mean an end to China’s crackdown on the broader technology sector of the country.
In November 2022, reports suggested that the Chinese authorities are set to impose a fine of more than $1 billion on Jack Ma's Ant Group. In January 2023, it was reported that Ant Group founder Jack Ma will give up control of the Chinese fintech giant following a crackdown that triggered soon after in 2020, Ant’s planned initial public offering (IPO) was thwarted in Hong Kong.
The Ant Group founder has remained away from the spotlight following the collapse of the IPO event.
China’s first-quarter economic result came much better than expected at 4.5 percent on yearly basis vs an estimate of 4 percent growth. However, the country has been facing a certain economic crisis with the last quarter (fourth quarter) data showed that economic growth fell to 2.9 percent from 3.9 percent in the third quarter.
The shares of Alibaba Group rose more than 2% in pre-opening on New York Stock Exchange (NYSE).
(With inputs from Reuters)
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