Beijing-based ByteDance, the proprietor of TikTok, stated on Wednesday that it will shrink its monetary companies 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 not too long ago has been tightening scrutiny in 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 pressured to do earlier this yr, a transfer that tightens capital necessities.
Sources have stated that ByteDance has by no means prioritised fintech enlargement, and that it has centered on sectors together with e-commerce and gaming as its new sources of progress.
© Thomson Reuters 2021