ByteDance, the owner of Beijing-based TikTok, said on Wednesday that it would scale down its financial services unit and plan to sell off its stock brokerage business amid tighter China’s grip on the market. financial technology sector (fintech).
ByteDance operates Songshu Zhengquan, which translates to Squirrel Securities, in Hong Kong, and Haitun Gupiao, or Dolphin Stocks, in mainland China.
China recently stepped up oversight of the fintech sector, forcing companies to form financial holding companies if they qualify, as Ant Group, a fintech subsidiary of Alibaba (9988.HK), was forced to do so earlier this year, a decision that tightens capital requirements.
Sources said ByteDance had never prioritized the expansion of fintech and had focused on industries such as e-commerce and gaming as new sources of growth.
ByteDance also operates Douyin Pay, its own third-party mobile payment, to facilitate e-commerce transactions for users on the Douyin short video app, the Chinese version of TikTok.
The two ubiquitous third-party mobile payment channels in China, Ant’s Alipay and WeChat Pay from Tencent Holdings, are also available on Douyin.