China imposed more than $1 billion in fines on tech giants Ant Group Co. and Tencent Holdings Ltd., signalling an end to a crackdown on the sector that had wiped out billions in market value and derailed the world¡¯s biggest initial public offering.
The People¡¯s Bank of China said financial regulators fined Ant 7.12 billion yuan ($984 million), wrapping up more than two years of probes into the finance technology firm founded by billionaire Jack Ma. Tencent was levied a 2.99 billion yuan fine, according to statements from the central bank Friday.
Tencent and Ant affiliate Alibaba Group Holding Ltd. soared in New York trading. Investors are betting the fines draw a line under the multi-year crackdown that torpedoed Ant¡¯s planned IPO in 2020 and ensnared some of the nation¡¯s most powerful private firms in sectors from online education to gaming. It paves the way for Ant to revive growth and eventually resurrect plans for an IPO.
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