Tencent CEO sees tech consolidation continuing

Tencent Chairman and CEO Pony Ma attends a session of the Chinese People's Political Consultative Conference in Beijing Thursday.PHOTO:REUTERS

(THE WALL STREET JOURNAL) The trend toward consolidation among Chinese technology startups may continue after a string of big mergers over the past year, the chief executive of Chinese Internet giantTencent HoldingsLtd.said Thursday.

Speaking at a news conference ahead of the National People’s Congress, Tencent CEO Pony Ma also noted that his company played a role in three of the four big mergers that happened over the past year in China’s tech industry. Tencent had a stake in one of the two merging companies in the merger of ride-hailing apps Didi Dache and Kuaidi Dache; the merger of group-buying apps Meituan and Dianping; and fashion shopping app Mogujie’s takeover of Meilishuo.

Many top business leaders are joining thousands of lawmakers and political advisers this week in Beijing for the annual legislative session, which begins Saturday.

Tencent is China’s biggest online games and social network company. It operates the WeChat messaging application, which has about 650 million active users.

Mr. Ma’s comments come as China’s startup founders are facing a tougher fundraising environment and considering other strategic options such as alliances and mergers. Amid China’s slowing economic growth and volatile stock market, venture capitalists are becoming more selective and cautious about paying high prices for their startup investments.