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Published On: Sun, Jul 15th, 2018

Tencent Teams Up With QTrade to Offer Online Trading Platform

China’s Tencent company is teaming up with QTrade to offer an online trading platform that offers investors Chinese bonds. The system will offer over-the-counter bonds in conjunction with the company’s messaging service, which traders already use for trading.

The platform was in the works for two years before being released to the public.

Chinese flag, Beijing, China. 2009 Photo/Daderot

Tencent is China’s largest gaming and social media company. The trading platform will allow traders to negotiate prices. The platform leverages its ability to verify identities to ensure trading is safe. The platform will also provide logs of transactions and conversations for a minimum of five years, as per the requirement of securities regulators.

Professional traders are the main target for the platform, which will allow investors to negotiate deals through the platform. Investors will still need to process transactions through official channels, such as the China Foreign Exchange Trade System.

QTrade will provide Tencent with analysis tools that aim to provide regulators with an in-depth look into transactions and users. Trading data will be easily searchable using the tools provided by QTrade, which will also allow regulators to search through transactions and logs by timeline or user.

QQ, a messaging service that’s offered through Tencent, will be responsible for the messaging and conversations between investors. The platform has 800 million users. The service will leverage the technology that QQ is built upon, including machine learning and big data capabilities, in an effort to lower risks and comply with regulations.

Traders have had difficulty with Chinese securities in recent years. Traders have been banned from using messaging accounts and individual email addresses to place orders. The ban hit the main transaction avenue of traders. Government regulators want traders to use the government’s chat system to conduct trade talks, but over 70% of traders are using personal messaging accounts to conduct trade talks.

Regulators fear that the use of personal accounts is too much of a security and financial risk for traders. China issued $6.3 trillion in bonds last year alone, making the risk of fraud a great concern among traders.

Tencent has been ramping up its offerings in recent weeks, with the company introducing a music entertainment IPO and a competitor to Steam. Reports suggest that the company’s online music business would be valued at more than $30 billion.

The company’s Tencent Music platform has 600 million users with 15 million paid subscribers, which can access the platform through Kuwo, KuGou and QQ Music platforms.

Author: Jacob Maslow

On the DISPATCH: Headlines  Local  Opinion

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