Chinese authorities are exploring requiring Tencent Holdings Ltd to incorporate WeChat Pay in a newly formed financial holding company, according to a report by Bloomberg on Friday.

  • The proposed move would create new challenges for Tencent, which was required in 2021 to cordon off financial services from its core business.
  • Tencent needs to fold its securities, banking, insurance, and credit-scoring services into a financial holding company that can be monitored like a conventional bank.
  • Regulators are considering whether WeChat Pay should be incorporated in that holding company and operate independently from the main social media division.
  • Even though investors have expected an overhaul of the financial services, the details of how that affects WeChat Pay remains uncertain.

The integration of WeChat Pay in the financial holding company adds a layer of uncertainty to the restructuring as it is an important feature of the WeChat super-app used. TCEHY up +3.95%