Tencent’s agreement with Hong Kong STP
On January 29, Chinese technology (QQQ) major Tencent Holdings (TCEHY) signed a memorandum of understanding with HKSTP (Hong Kong Science and Technology Park.) According to the agreement, Tencent will share its technologies with startups in the Park. The Chinese internet giant will provide its expertize in data security, the blockchain, Artificial Intelligence, online payments, and cloud computing to these start-ups for the application of fintech. The agreement will also help to foster innovations in health tech, AI, robotics and smart city.
Tencent’s other initiatives
Tim Leung, a senior director at Tencent Financial Technology said, “HKSTP carries the mission of the Hong Kong government to nurture local start-up companies, which is very much in line with the mission of Tencent.” Apart from sharing technical know-how, the company will also help the fintech startups in the park via its Finance Academy. The HKSTP informed that around 100 of 700 incubators in the park are fintech startups.
Tencent’s Hong Kong version of WeChat Pay facilitates payment by local users to the merchants in mainland China. TCEHY is the first company in China to allow users to settle invoices on the mainland via Hong Kong dollar since October 2018. Tencent’s Hong Kong version of WeChat Pay competes with AlipayHK, part of Alibaba’s (BABA) Ant Financial.
Tencent is reportedly considering picking up a stake in the owner of South Korean gaming company Nexon. Nexon founder Kim Jung-ju intends to dispose-off his controlling stake of 98.6% in the NXC holding company owned by him and associates. The market value of the stake is close to $9.0 billion according to sources familiar to the matter.
With the US Government’s recent crackdown on Chinese tech major Huawei, ADRs (American Depository Receipts) of Chinese tech majors such as Huya (HUYA), Baidu (BIDU), NetEase (NTES) and Bilibili (BILI) could see a lot of volatility in the near future.