Tencent Caught In Regulatory Turmoil Like Jack Ma's Ant Group

China looks to require Tencent Holdings Ltd TCEHY to include WeChat Pay in a newly created financial holding company, Bloomberg reports.
The overhaul may mandate a new license for the universal mobile payments service subjecting it to intense regulatory scrutiny jeopardizing the one-stop-shop appeal reviving investor angst.
Tencent needs to fold its banking, securities, insurance, and credit-scoring services into a financial holding company subject to regulations like Alibaba Group Holding Ltd BABA founder Jack Ma's Ant Group Co.
Also Read: Alibaba's Market Cap Has More Than Halved Since Ant IPO Debacle, After Alibaba, Tencent Could Attract Regulatory Penalty
Ant's estimated valuation plunged to $63 billion from over $300 billion partly due to the stricter regulations of being a financial holding company.
Regulators weighed whether WeChat Pay could be included in that holding company and operate separately from the leading social media arm.
China previously ordered Tencent and other internet firms to disassociate financial services from its primary business.
Price Action: BABA shares closed lower by 4.33% at $100.43 on Thursday.