The overhaul comes two days after e-commerce giant Alibaba Group Holding Ltd, of which Ant is a subsidiary, was hit with a $ 2.75 billion antitrust penalty as China tightens controls on “the economy platforms ”.

(Subscribe to our Today’s Cache newsletter for a quick rundown of the 5 best tech stories. Click here to subscribe for free.)

Chinese group Ant Group, the fintech giant whose $ 37 billion IPO was derailed by cautious regulators days before its November IPO, will restructure as a financial holding company, announced Monday the country’s central bank.

The overhaul comes two days after e-commerce giant Alibaba Group Holding Ltd, of which Ant is a subsidiary, was hit with a $ 2.75 billion antitrust penalty as China tightens controls on “the economy platforms ”.

Under the terms of the settlement, Ant will restructure as a financial holding company, a move that, along with other restrictions announced on Monday, is expected to dampen its profitability and valuation.

“Ant Group attaches great importance to the seriousness of the rectification,” the company said in a statement, adding that it plans to start a personal credit assessment business and consolidate its two flagship credit businesses into its company. consumer credit.

The People’s Bank of China said that as part of a “comprehensive and feasible restructuring plan,” Ant would sever the “inappropriate” link between the AliPay payment service, the Jiebei virtual credit card company and the unit. Huabei consumer credit.

The central bank also called on Ant to break its “information monopoly and strictly adhere to the requirements of credit reporting trade regulations.”

Read also: Tencent boss meets with Chinese competition officials as scrutiny expands

The company, part of the sprawling business empire founded by billionaire Jack Ma, has agreed to improve corporate governance and “rectify illegal financial activities in credit, insurance and wealth management. “said the central bank.

The central bank said it had also asked Ant to control its debt and product risks, control the liquidity risk of its flagship products and “actively reduce” the size of its huge Yu’eBao money market fund. .

The measures “set an example” for the financial regulation of the platform economy, “the state-backed economic newspaper said Monday in a commentary.