China's Ad Market Post 2Q Results - BABA Best Positioned; Least Vulnerable to Regulatory Risks

Independent TMT Analyst

Edison Lee, CFA

Equity Bottom-Up

<ul>
<li>The PBOC is tightening its control over online payment platforms. Owing to the strict requirement to implement the "real name basis" for every third-party online payment account, <a href="https://www.smartkarma.com/entities/26" target="_blank" data-smartkarma-citation="entities:26:1">Tencent Holdings Ltd (700 HK)</a>'s WePay platform has been reportedly forced to close down 3,000 merchants' online payment function.</li>
<li>A significant e-Commerce platform has developed on the back of Tencent's QQ, Weixin and WeChat services, utilizing the "Circle of Friends" functionality and Tencent's WePay system. However…</li>
</ul>


The PBOC is tightening its control over online payment platforms. Owing to the strict requirement to implement the "real name basis" for every third-party online payment account, Tencent Holdings Ltd (700 HK)'s WePay platform has been reportedly forced to close down 3,000 merchants' online payment function.
A significant e-Commerce platform has developed on the back of Tencent's QQ, Weixin and WeChat services, utilizing the "Circle of Friends" functionality and Tencent's WePay system. However…


China Internet - Downside Risk for 2H16 Driven by Tightened Regulations on Online Payment and News