“Pony Ma’s Tencent has been put on notice. Asia’s largest conglomerate was censured by China’s antitrust watchdog on Friday as Beijing expands a crackdown that began with Jack Ma’s online empire,” Bloomberg reported citing people familiar with the situation.
Details:
- Tencent is next in line for China’s crackdown on local fintech giants and will probably be required to set up a holding company to umbrella its financial services, one source said.
- The internet titan said it plans to continue adapting to China’s shifting regulatory environment and would like to ensure its full compliance.
Context:
- Jack Ma’s Ant Group has recently faced similar clamp down measures in China, which hampered it’s would be blockbuster IPO.
- The sources said that Ant and Tencent will set a precedent for other Chinese companies in the financial services space on complying with stricter local rules.
