20 August 2019

Virtual credit card suspension ‘reasonable’, Tencent says

Tencent Holdings Ltd. (00700.HK) said the central bank’s decision last week to suspend virtual credit card and QR code payment services is reasonable and does not mean the regulator opposes financial innovation.

“The payment [systems] are new to the financial system and there is a need for better communication with the regulators, but the regulators have also voted for financial innovation,” Tencent president Martin Lau told a post-results briefing Wednesday.

Lau said Tencent’s private bank application is also still being processed. “We wish to run a bank to meet the strong demand for financial services, give a better internet finance experience to our customers and cooperate with other financial institutions,” he said.

In addition, the company has proposed splitting each share into five with the board lot remaining unchanged at 100 shares per lot, according to a company statement. “We would like our shares to have higher liquidity, but we are not going to raise capital from the split-share proposal,” he said. 

According to some media reports, Tencent chairman Pony Ma said half a year ago that it is not necessary to split shares.

– Contact HKEJ at [email protected]



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