Jiazhuo George Wang, Professor and Chair of Department of Accounting and Finance at the College of Staten Island, was recently quoted in an article in the French newspaper Le Monde on the financial impact of the Chinese pay platform Alipay (also known as Alibaba Ant), an application for payment, financial investment, credit, and insurance. Alipay is projected to attract $35 billion through a double listing on the Hong Kong Stock Exchange and the Shanghai-based New Star Market.
In his comments on Alipay’s impact, he said that “Before the emergence of online finance options in China, the market was monopolized by the big State banks, and the main beneficiaries of these funds were also state-owned enterprises. So, 80% of applicants, especially individual consumers and SMEs, were in competition for the remaining 20% of resources. Many had to borrow on the underground finance market at an exorbitant cost: interest could reach 30% to 50%, compared to single-digit interest at state banks. Ant provided alternative financial options for these people. It has had a huge impact on the economy!“
By Editor (translation by Warrick Bell)