According to the plan, Ant will turn over user data underpinning loan decisions to a new credit scoring joint venture, the FT reported, citing people familiar with the process. The JV will be partly state-owned, the report said.
Hong Kong-listed shares of Alibaba, Ant Group’s e-commerce affiliate, fell more than 4% Monday afternoon following the FT report. The decline weighed on the broader Chinese tech sector as the Hang Seng Tech index declined almost 3%, with shares of other Chinese tech heavyweights like Tencent and Meituan also taking a beating.
Reuters said in early September that state-back firms are set to take a sizeable stake in the credit-scoring joint-venture, with Ant and Zhejiang Tourism Investment Group owning 35% each of the venture.
Ant will not be the only online lender in China affected by the new rules, according to the FT.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.