Chinese tech giant Tencent Holding has started offering fund advisory services through its fund distribution unit, Teng An Fund.
Teng An Fund will initially provide investment advisory services to select investors, according to Reuters citing the company’s client service department.
The service, named Yi Qi Tou, is meant to recommend mutual fund investments to retail buyers. Teng An partnered with fund houses to develop investment advisory strategies.
In September last year, Tencent agreed to form a technological joint venture (JV) with China International Capital (CICC) to create new technology platforms for wealth management industry.
After the trial period is complete, the new fund advisory service will be available on Tencent’s messaging app WeChat. This will allow the company’s more than one billion users to invest in fund products within the app.
Previously, Ant Group also formed a joint venture with US asset management firm Vanguard Group to provide a similar fund advisory service in China.
China began issuing fund advisory licences in September last year, with mutual fund houses, brokerages, banks and fund distributors interested in participating.
Another Chinese company, ByteDance, which owns the short-video app TikTok, was also reported to work on entering the online stock brokerage and wealth management business in Hong Kong.