TikTok-Father or mother ByteDance Says It Will Downsize Fintech Enterprise, Plans to Promote Inventory Dealer Operations
Beijing-based ByteDance, the proprietor of TikTok, stated on Wednesday that it will shrink its monetary providers unit and that it deliberate to promote its inventory broking operations amid China’s tightening grip on the monetary know-how (fintech) sector.
ByteDance operates Songshu Zhengquan, which interprets to Squirrel Securities, in Hong Kong, and Haitun Gupiao, or Dolphin Shares, in mainland China.
China just lately has been tightening scrutiny in the direction of the fintech sector, requiring corporations to arrange monetary holding corporations in the event that they meet necessities to take action, as Alibaba’s (9988.HK) fintech affiliate Ant Group was compelled to do earlier this 12 months, a transfer that tightens capital necessities.
Sources have stated that ByteDance has by no means prioritised fintech growth, and that it has centered on sectors together with e-commerce and gaming as its new sources of progress.
ByteDance additionally operates Douyin Pay, its personal third-party cellular cost, to facilitate customers on e-commerce transactions on quick video app Douyin, the Chinese language model of TikTok.
China’s two ubiquitous third-party cellular cost channels, Ant’s Alipay and Tencent’s WeChat Pay, are additionally obtainable on Douyin.
© Thomson Reuters 2021