Tencent Holdings faces a potential “record fine for violations of some central bank regulations by its WeChat Pay mobile network”, according to the Wall Street Journal. Chinese financial regulators noticed that WeChat Pay had flouted China’s anti-money-laundering (AML) rules and had compliance issues regarding KYC and KYB regulations, among other things. This comes amid Beijing’s strict regulation and crackdown of tech companies in China and a stepping up of efforts to combat illegal fund flows, aiming to avert systemic risk and shore up the financial industry. While the size of a the fine is not yet known, Bloomberg reports that it would be in the hundreds of millions of yuan. Tencent’s shares fell 10% to its lowest in almost 2 years.
Tencent’s dollar bonds were also lower – its 4.25% 2049s were down 5.2 points to 89.9, yielding 5.23%.
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