Ant Group publishes financial self-discipline rules amid tougher Chinese review

BEIJING (Reuters) – China’s Ant Group on Friday reported a set of financial self-discipline rules amid scrutiny of its business by authorities and the overall tightening of fintech regulations in the country.

The rules, the first of their kind released by the fintech giant, come about four months after China suspended the group’s $ 37 billion plan to list shares in Shanghai and Hong Kong.

Chinese regulators have tightened their grip on fintech companies, amid concerns over systemic financial risks posed by the financial empire affiliated with Chinese e-commerce giant Alibaba Group.

In response to intense regulatory pressure, the group slowed down some of its operations, taking measures to align its capital requirements with those of banks and reorganizing itself into a financial holding company.

In a statement, Ant said its consumer lending platforms should not give loans to minors and should prevent small business loans from pouring into the stock and real estate markets.

Zhima Credit Group’s credit rating service will also not be available to financial institutions, including micro-loan lenders, he said, without specifying the specific risk of such collaborations.

Reflecting regulators’ firm stance on financial risk, Guo Shuqing, head of China’s Banking and Insurance Regulatory Commission, warned last week that bubble risk is a major problem facing China’s real estate industry.

Regarding the restructuring of Ant’s business, Guo said that there are no restrictions on the financial activities it develops, but all of its financial activities should be regulated by laws.

Previously, Ant had lowered its borrowing limits for some young users of its Huabei virtual card product. The reduction in the credit limit is aimed at promoting more “rational” spending habits among users, he said.