Tencent bounces hard after President Xi spooks market into $200B tech selloff
Stock traders are into Tencent’s 89% profit increase, regardless of all that anti-monopoly stuff
Tencent investors spooked by Xi’s anti-monopoly plans
Tencent’s post-earnings stock rally comes just as investors dumped more than $200 billion worth of equity on Tuesday, and one week after thecurious suspensionof Alibaba subsidiary Ant Financial’s much-anticipated US IPO (which would’ve been the biggest in history.)
As noted by Bloomberg, share prices for Chinese tech giants like Tencent and Alibaba have dropped sharply since their government revealed new regulations to curb monopolies in the internet sector.
”China’s Big Tech will have to rethink their business models,” said one Beijing-basedinsider to Bloomberg. “The philosophy of internet companies is winner-takes-all, and especially for platform operators, they garner user traffic and build up ecosystems that are similar to each other.”
Tencent stock is still up 50% for the year-to-date, trailing the Hang Seng Tech index of top 30 Hong Kong-listed technology stocks by around 4%.
Story byDavid Canellis
David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.
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