Tech groups in China repeatedly hear one sound these days: the crack of Beijing’s whip. Ears ring most in the lucrative music streaming industry. Market leader Tencent Music, controlled by Tencent Holdings, will suffer most from the intensifying regulatory scrutiny.

China’s biggest music streaming company was fined last month for unfair market practices and ordered to give up exclusive music licensing rights. It has about a week left to comply.

Tencent Music must find a new business model. It holds more than 80 per cent of the country’s exclusive music content, which backed its rapid growth. Revenues reached $4.5bn last year. Operating margins of 14 per cent at the end of March compare favourably with Spotify’s losses. The latter holds 8 per cent of Tencent Music’s ordinary shares.