PBOC agrees to Alipay removing controlling shareholder

China's central bank has agreed to Alipay's change to having no actual controller, according to a statement from the People's Bank of China.

Ant Group's governance restructuring and the changes in its popular mobile payment tool Alipay's control dynamics have been closely watched due to their influence in the fintech sector.

In a statement posted on Ant Group's official website in January, the company said it has been undertaking several initiatives since 2021, including changes to the number of independent directors and forming six sub-committees, to optimize its corporate governance and achieve long-term sustainable development. The company stated that 10 individuals, including management and employees, would be granted voting rights. 

The central bank's acknowledgment of the removal of any controlling shareholder from Alipay came after the country recently unveiled the new rule for non-bank payment institutions, which will take effect in May next year. 

The new rule for the supervision and administration of non-bank payment institutions has made clear the definition of such institutions, fine-tuned regulations on payment businesses, stated the purposes of protecting users' legitimate rights and interests, and clarified the regulatory and legal responsibilities of related parties.

ouyangshijia@chinadaily.com.cn