ByteDance suggests it will downsize fintech company, designs to promote inventory broker ops

BEIJING (Reuters) – Beijing-dependent ByteDance, the owner of TikTok, mentioned on Wednesday that it would shrink its economic companies device and that it planned to offer its inventory broking functions amid China’s tightening grip on the economic know-how (fintech) sector.

ByteDance operates Songshu Zhengquan, which interprets to Squirrel Securities, in Hong Kong, and Haitun Gupiao, or Dolphin Stocks, in mainland China.

China recently has been tightening scrutiny towards the fintech sector, necessitating providers to established up economic keeping companies if they meet necessities to do so, as Alibaba’s (9988.HK) fintech affiliate Ant Group was forced to do previously this calendar year, a transfer that tightens capital prerequisites.

Resources have explained that ByteDance has in no way prioritised fintech expansion, and that it has centered on sectors which includes e-commerce and gaming as its new sources of development.

ByteDance also operates Douyin Shell out, its personal 3rd-celebration mobile payment, to facilitate people on e-commerce transactions on small video app Douyin, the Chinese edition of TikTok.

China’s two ubiquitous 3rd-social gathering cell payment channels, Ant’s Alipay and Tencent Holdings’ WeChat Shell out, are also readily available on Douyin.

(Reporting by Yingzhi Yang and Brenda Goh. Modifying by Gerry Doyle)