This article is submitted by a friend of Momentum Works who prefers to be anonymous. The person knows Tencent well. The opinions expressed here are not of the Momentum Works or TLD team. Any opinions/enquiries on this article can be routed through us ([email protected]).
There is a Bloomberg story that Tencent will be the next in line to face the fintech clampdown in China, after Jack Ma’s Ant Group.
Citing some sources ‘familiar with the matter’, the article says Tencent will also have to lump its fintech businesses into a holding group that would be regulated like a bank.
This is not true – and the source, whoever that is, is probably ignorant.
The truth is, Tencent has sorted out the relations of its fintech business with the government, and the regulators, in China, long time ago.
You might find some clues in this speech by Pony Ma on the role of fintech business.
You might also find some clues in the Tencent-CICC joint venture announced last year.
