Tencent hunts for growth after China threat erases $170 billion

Beijing’s clampdown on its most powerful internet firms is clouding the prospects for Tencent Holdings Ltd. and its $120 billion financial services operation just as it’s casting around for new sources of growth.

China’s top watchdogs have stepped up oversight of the country’s most valuable company, scrutinizing everything from Tencent’s insights into the online behavior of a billion-plus people to an investment portfolio that spans hundreds of startups. Regulators are said to be considering forcing Tencent to overhaul a promising fintech division, folding the operation into a holding company in much the same way they’re demanding of Jack Ma’s Ant Group Co.