Stock market correction of 5%-10% ‘likely before year end’, Deutsche Bank survey finds – business live

This post was originally published on this site

Shares in the Chinese technology company Alibaba have fallen sharply after reports said regulators wanted to break up Alipay, the payments app with more than 1 billion users owned by Jack Ma’s Ant Group.

Beijing is seeking to create a separate app for the company’s highly profitable loans businesses, in the latest crackdown on China’s technology sector by the state’s authorities.

Chinese regulators are reportedly concerned at the financial risk building in the economy; Alipay’s loans business helped issue about 10% of the country’s non-mortgage consumer loans last year.

Regulators have already ordered Ant Group to separate the back end of its two lending businesses, Huabei and Jiebei, from the rest of its financial offerings.

Beijing wants the two businesses to be split into a separate independent app, while also requiring Ant to share user data to a new credit-scoring joint venture that would be partly state-owned, according to the Financial Times. State-owned companies in Ant’s home province, including the Zhejiang Tourism Investment Group, would hold a majority stake in the new joint venture.

The news sent shares in Alibaba down as much as 6% in trading on Monday as the wider Hang Seng Tech index, which tracks China’s biggest tech groups listed in Hong Kong, fell more than 3% over investor concerns about the latest crackdown.

Markets Today (@marketstodays)

Shares price of #Alibaba falls 5.8% in Hong Kong after the report on #Alipay to separate the back end of its two lending businesses, Huabei and Jiebei.$BABA #HongKong pic.twitter.com/jE3yMUdkEl

September 13, 2021

Here’s the full story: