Tencent Holdings profit beats expectations even with tech crackdown

Tencent Holdings played down the impact of Beijing’s heightening scrutiny over China’s biggest internet firms, saying a potential revamp of its $120 billion fintech wing should have little impact on its business. The firm on Wednesday reported a market-beating 26 per cent jump in quarterly sales, helped in part by a surge in revenue from its online gaming business. 

Revenue rose to 133.67 billion yuan in the quarter ended December, versus market expectations of 132.19 billion yuan, based on data from Refinitiv.

Beijing is widening a crackdown on the country’s largest corporations, fearful of their growing clout. Tencent’s attempt to allay investor concern over regulatory scrutiny comes after it posted revenue growth that barely met expectations.

Regulators are said to be considering forcing the firm to overhaul its promising fintech division in a similar fashion to Jack Ma’s Ant Group Co. 

Pony Ma meets antitrust officials

Pony Ma, the founder of Tencent Holdings, China’s biggest social media and video games company, met with antitrust watchdog officials this month to discuss compliance at his group, three people with knowledge of the matter said.

The meeting is the most concrete indication yet that China’s unprecedented antitrust crackdown, which started late last year with billionaire Jack Ma's Alibaba business empire, could soon target other internet behemoths.