TikTok parent ByteDance is curtailing its FinTech operations and selling off its stock brokerage business as Chinese regulators continue to wield power over companies that offer financial services, Reuters and other news outlets reported on Thursday (Sept. 2).
ByteDance, headquartered in Beijing, runs Songshu Zhengquan — translated as Squirrel Securities — in Hong Kong, as well as Haitun Gupiao — translated as Dolphin Stocks — in mainland China.
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FinTech expansion didn’t hold great importance to ByteDance, which instead has been focusing on growing its other business units, such as eCommerce and gaming, sources said previously per Reuters.
The company runs its own third-party payments app — Douyin Pay — to process eCommerce transactions on the Chinese version of TikTok called Douyin. Douyin Pay also has Ant’s Alipay and Tencent’s WeChat Pay on its payments platform.
The move by ByteDance comes as Chinese watchdogs ramp up regulations and oversight on tech firms, forcing them to spin off FinTech operations as separate companies and meet stricter capital requirements.
Regulators are casting a wider net, with the crackdown moving beyond tech companies’ payment operations and probing their social reach and data collection. The Chinese government is also targeting insurance tech platforms over marketing and pricing, and even the liquor industry over volatile pricing, PYMNTS reported.