On July 7, according to media reports, the relevant Chinese regulators may announce a fine of at least 8 billion yuan ($1.1 billion) for Ant Financial as early as Friday, thus ending its regulatory reforms in recent years.。

As early as 2020, Ant Financial had sought to list in Hong Kong, China。In November 2020, Ant Group was suspended 36 hours before listing。At that time, Chinese authorities conducted intensive regulatory interviews with 14 domestic online platforms engaged in financial business, and Ant Financial was one of them.。

Chinese authorities have been pushing to reform Ant Financial after its failed IPO。After more than two years of regulatory rectification, it is now coming to an end.。On January 8, 2023, Guo Shuqing, Secretary of the Party Committee of the People's Bank of China and Chairman of the China Banking and Insurance Regulatory Commission, revealed for the first time the progress of the rectification: "The special rectification of the financial business of 14 platform enterprises has been basically completed, and a few remaining problems are also being resolved.。Normalized supervision will be implemented to encourage platform companies to operate in compliance.。"

According to the source, the reasons for the fine mainly focused on Ant Group's suspected irregularities in the "disorderly expansion of capital" and the corresponding financial risks caused by its business.。

Back in April, there were media reports that Chinese regulators were considering a fine of about 5 billion yuan for Ant Financial.。Now, this amount is adjusted to 8 billion yuan。The figure would be the largest penalty imposed on an internet company since Didi Chuxing was fined $1.2 billion by Chinese regulators.。This is not the first time Ali has been punished.。In 2021, Alibaba was fined a record 18 billion yuan for antitrust violations.。

Vey-Sern Ling, managing director of Union Bancaire Privee, said: "The market is happy with this result because it looks like the review may be over.。The fine, while large in absolute terms, is relatively easy to handle for such a large company。The 8 billion yuan fine will be less than Ant Group's estimated 9.6 billion yuan profit in the fourth quarter of last year.。

Today, Alibaba-SW shares rose about 6% in intraday trading, but then gave back some of their gains to close at 84.HK $3, up 3.44%。

Founded by Jack Ma, Ant Financial is mainly engaged in payment processing, consumer loans and insurance product distribution.。In 2020, some investors valued it at nearly $300 billion.。

Since April 2021, Ant Group has officially entered into a comprehensive business rectification and restructuring.。Rectification includes positioning itself as a financial holding company rather than a technology company。This means that Ant Financial needs to comply with similar rules and capital requirements as banks.。According to the previously announced rectification plan, Ant Financial has disconnected its connection with Alipay, Huabai, Borrowing and other financial products, depressing the balance business, shutting down mutual treasure and returning to its core payment business.。

The rectification also includes the actual controller of the company.。Ma previously owned more than 50% of Ant Financial's voting rights, but in January this year, Ant Financial announced a management shake-up。After the adjustment was completed, the voting rights of Ma and his co-actors increased from 53.46% down to 6.208%, no longer the actual controller of the company.。Ant Financial said the changes further enhance the transparency and effectiveness of corporate governance and strengthen its isolation from shareholder Alibaba Group.。Voting rights have become more decentralized and there is no longer any direct or indirect shareholder single or joint control of Ant Group.。

Industry insiders believe that the move shows that the rectification has achieved phased results, Ant Financial Services and Alibaba completed the initial cut, the future is expected to independently apply for a financial holding company license, and restart the listing.。

But Ant Financial wants to restart the listing, and it's not that easy。According to the provisions of China's A-share IPO, the declaration of listing on the main board of the Shanghai and Shenzhen exchanges requires that the company has not changed its actual controller in the last 3 years;。In Hong Kong, China, under the listing rules, ownership and control are required to remain unchanged for at least the most recent audited fiscal year.。In other words, in the absence of other conditions, Ant Financial's "listing dream" will not be realized for at least a year.。