The news: China's central bank has fined Ant Group, an affiliate of Alibaba, nearly $1B, ending a probe into the fintech company after its IPO was canceled nearly three years ago. Details: Ant Group, owner of digital-payment platform Alipay, along with its subsidiaries, were fined a total of 7.123 billion yuan, or roughly $999M. The penalty, one of the largest imposed on a Chinese internet company, was for violations of rules related to financial consumer protection, anti-money laundering, and more. Why it matters: The fine could signal the end of the scrutiny and restructuring of Ant, which was set to launch the world's largest IPO in 2020 before it was halted by regulators. As a result of China's crackdown, the tech giant has undergone a major revamp, including transforming into a financial holding company under the supervision of the People's Bank of China. The bigger picture: Alibaba holds approximately a 33% stake in Ant Group. Both companies were founded by Chinese billionaire Jack Ma, who recently made a reappearance in mainland China. The fine, along with new penalties imposed on Ant Group's Alipay and Tencent Holdings Tenpay, suggests that Chinese regulators are closing in on the end of their tech crackdown, allowing Ma's companies and others to resume business growth.
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