For instance, the payments business straddles two units including WeChat, the instant messaging app, and the fintech unit that provides the back-end infrastructure under the leadership of the corporate development group. Yet the services are supervised by different business groups - unlike Ant, which consolidates all of its fintech operations into a single entity. Tencent's fintech and business division - which includes cloud computing - is its fastest growth engine, contributing roughly 30 per cent of its total sales, the biggest revenue source after gaming. Tencent's complex web of internal connections could complicate its separation from the rest of the company. Tencent management, including chief strategy officer James Mitchell, stressed during the company's May earnings call that its bread and butter in the finance business was payments, which has lower risks.īut WeChat Pay is at the heart of the social media giant's businesses, handling an estimated 40 per cent of China's mobile payments as at 2021, second only to Alipay. Executives have said that such a move should have minimal impact on operations. The requests to Tencent are similar to those imposed on Ant, which regulators said earlier this month has yet to complete its own overhaul. In April 2021, regulators summoned 13 firms including Tencent, Meituan and ByteDance to a meeting, requiring them to restructure their financial wings into holding companies and sever "improper links" between their existing payments services and financial products. Tencent representatives declined to comment. The People's Bank of China did not immediately respond to a request seeking comment.
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