Photographer: Yan Cong / Bloomberg
Photographer: Yan Cong / Bloomberg
Tencent Holdings Ltd. said an employee is being investigated for alleged corruption in his personal dealings, rejecting a report that the investigation involved the unauthorized transfer of data from WeChat.
Zhang Feng’s investigation does not involve Tencent’s WeChat messaging service, a spokesman said. The Wall Street Journal previously reported that Zhang had been detained for allegedly sharing personal data collected by WeChat with Sun Lijun, a former deputy minister of public security who is being investigated by Beijing.
Zhang, who was identified as vice president in November 2018 statement by a local municipal government, has never held a senior position and is not a vice president, said the Tencent spokesman. Investigators are investigating what kind of data Zhang may have shared with Sun and what the government official may have done with the information, the WSJ said.
Tencent said earlier this month that it laid off more than 100 employees on suspicion of graft in a series of surveys last year and reported more than 40 workers to the police. The company’s rare revelation underscores Beijing’s increasingly harsh stance on corruption among government officials and corporate executives.
Read More: Tencent fires more than 100 employees in one The whole year Graft probe
China is also increasing scrutiny from its most powerful technology corporations, including Tencent and archrival Alibaba Group Holding Ltd., seeking to control its growing power in a multitude of sectors, from finance to e-commerce and shared economy.
Pony Ma, the company’s president and co-founder, is not being investigated, according to a person familiar with the matter. He was free to leave China and travel to Singapore last year, the person said, asking not to be identified discussing a private matter.
Shares in Tencent, Asia’s most valuable company, fell by 1.6% before reducing losses in Hong Kong’s trades.
“This will definitely trigger some profit realization for the shares, as they have increased significantly this year,” said Daniel So, strategist at CMB International Securities Ltd. “While the case involves corruption, which is a sensitive issue, it seems that the impact it will not be as deep as Alibaba right now, as it is tied to an individual and not to the Internet business. Investors will still embrace the shares ”.
– With the help of Lulu Yilun Chen and Felix Tam
(Updates the first paragraph with details)