Tencent, the giant that dominates the Chinese hi-tech market together with Alibaba, has also received the order from the Beijing authorities to transfer its financial assets to a new holding that is separate from everything else. This will allow for better checks on a very large galaxy that also includes mobile payments, loans and insurance. Alibaba was also forced to go through the process for its Ant financial payments platform. Wechat is that of Tencent. E-commerce in China currently accounts for 30% of GDP.
Normalization also coming for Pony Ma
The diktat to Alibaba is a confirmation of the state strategy towards Big Tech. The move is the result of the normalization strategy of technology groups in financial services fueled by concerns about potential systemic risks to system stability and their market power after years of strong expansion.
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Even the empire of Pony Ma, the founder of Tencent, must align with a series of directives issued after the halted listing of Alipay in Hong Kong last November.
Tencent together with Alibaba and more recently Bytedance, owner of Tik Tok, is among the giants of payment platforms. WeChat also ended up in the Chinese authorities’ crosshairs for carrying other financial activities typical of the banking sector.
The attack of next generation videogames
There is also a technological side to highlight in the critical issues that are looming for Tencent. It is a sector in which it is very strong, that of online games. Till now.