Analysis on the Transformation Path of Fintech Companies under the Background of Financial Regulatory Policy Changes —— Evidence from Ant Group

The rapid development of fintech has disrupted the traditional financial order, and the traditional financial regulation has gradually become ineffective. In response to these emerging challenges, the Chinese government has introduced a series of policies to strengthen financial regulation and bring fintech enterprises under tighter regulatory oversight. As a result, fintech companies are now under greater pressure to transform in order to comply with regulations and enhance their competitiveness. The suspension of Ant Group's IPO in 2020 served as a turning point, indicating an era of more stringent regulations to the fintech industry. Ant Group’s subsequent transformation also provides valuable insights for other fintech companies facing similar regulatory changes. They should prioritize technological innovation over regulatory arbitrage, reduce leverage and financial risks, strengthen compliance with data and credit regulations, and realign their operations with the goal of supporting small businesses and promoting inclusive finance to achieve long-term and sustainable growth.