ChinaLin Securities Plans to Acquire ByteDance Subsidiary
Shenzhen-based ChinaLin Securities announced on Monday that the company signed a purchase agreement of “Dolphin Stock” with ByteDance. After this transaction is completed, ByteDance will no longer operate the stock app and corresponding securities business.
In order to improve Dolphin Stock App’s operations and to provide better customer service, ChinaLin Securities plans to transfer 100% equity of Beijing Wenxing Online Technology Co., Ltd., the main operator of the app, and apply for filing it as a professional information technology subsidiary.
Wenxing Online is the main operator of the Dolphin Stock App while ByteDance’s Toutiao is the sole shareholder of Wenxing Online, holding 100% equity of the latter.
Wenxing Online was established in April 2017 and uses Dolphin Stock App as a platform, then quantifies big data on the stock market based on Toutiao’s machine learning model to provide users with timely stock price trends. It has also adopted a genetic algorithm and natural language investment logic analysis to scan trending spots on the stock market and to intelligently monitor market dynamics.
ChinaLin Securities was established in April 1988 and mainly engages in securities brokerage, underwriting and self-operating, listing recommendations, investment consulting and financial consulting, and other services.
On one hand, ChinaLin Securities said that the company set up an information technology professional subsidiary through acquisition to further tap the value of the Dolphin Stock App. On the other hand, the company aims to conform to the development trend of the financial market, comprehensively improve its independent R&D level and customer service capability to become a financial technology firm.
SEE ALSO: ByteDance Denies Developing Game Similar to Genshin Impact
In terms of impact of the acquisition on the company, ChinaLin Securities said it is beneficial for the company to optimize the construction and management of the financial technology team and to provide support for the company to build its core competitiveness. However, the new subsidiary’s software and hardware systems needs to be updated every year, leading to higher costs in the future.
