Tencent's Pony Ma Grapples with $170 Billion China Threat

Billionaire founder Pony Ma and his lieutenants face questions on Beijing's intentions and how it could go about revamping China's largest online banking and lending operation after Ant's.

Beijing's clampdown on its most powerful internet firms is clouding the prospects for Tencent Holdings Ltd. and its $120 billion financial services operation just as it's casting around for new sources of growth. China's top watchdogs have stepped up oversight of the country's most valuable company, scrutinizing everything from Tencent's insights into the online behavior of a billion-plus people to an investment portfolio that spans hundreds of startups. Regulators are said to be considering forcing Tencent to overhaul a promising fintech division, folding the operation into a holding company in much the same way they're demanding of Jack Ma's Ant Group Co. The uncertain outcome of that wide-ranging effort will overshadow Tencent's giant gaming arm when it reports quarterly earnings Wednesday. Billionaire founder Pony Ma and his lieutenants face questions on Beijing's intentions and how it could go about revamping China's largest online banking and lending operation after Ant's. The threat of a probe has already wiped $170 billion off the company's value since a January peak. It shares stood largely unchanged Wednesday. Ma met with State Administration for Market Regulation officials earlier this month to discuss compliance at Tencent, Reuters reported on Wednesday. Officials at the meeting, which was initiated by Ma, expressed concern about some of Tencent's business practices and asked the group to comply with antitrust rules, Reuters said, citing people with knowledge of the matter. The antitrust watchdog was gathering information and looking into potential monopolistic practices by WeChat, according to the report. Tencent had no immediate comment on the report.