(Yicai Global) Jan. 4 -- Chinese internet giant Tencent Holdings Ltd. has obtained a third-party license which will allow it to sell funds through its social media platform WeChat.
The Shenzhen branch of the China Securities Regulatory Commission said on Jan. 2 that it had approved Tengan Information Technology Shenzhen Co., a Tencent unit, to distribute funds and change its name to Tengan Fund Sales Shenzhen Co.
Before acquiring the license, Tencent's online finance service Licai Tong linked to fund firms or third-party sellers, but couldn't sell products directly. Now, the 980 million monthly active users on the firm's social media and lifestyle platform WeChat, will be able to buy funds without leaving the app.
The move comes after Tencent got the green light in October to operate as an insurer and will allow the company to expand further into the financial sector.