The numbers are impressive to say the least. Shares of Chinese tech giant Tencent are plummeting on the Hong Kong Stock Exchange after peaking in January 2021. They have tumbled 64%, a drop in value of $623 billion. According Bloombergno company in the world has done worse.
Chinese tech giants are battered on the stock market
It must be said that the clouds are gathering on the horizon for the society of the Middle Kingdom. Very strong in the video game sector, it sees its activity hampered by the regulations put in place by the government. The latter has indeed decided to drastically reduce the playing time authorized for minors. It is very strictly controlled by the giants of the local video game industry. Similarly, censorship prevents many titles from seeing the light of day on site.
One of the solutions for Tencent involves investing in studios abroad. There are always more of them, and the company has recently taken an advantageous position within Ubisoft.
Tencent, which also runs popular instant messaging app WeChat, also sees prospects for its advertising business darkening. The recession could indeed hit the world economy in 2023, and in this context, the Chinese company could leave feathers there, just like its rivals Meta and Google.
Quoted by the American media, Kenny Wen, head of investment research at KGI Asia Ltd, does not beat around the bush: There is no positive outlook for Tencent in the second half as its earnings will continue to be pressured by the weak macroeconomic environment. “.
He adds : ” And even when the situation improves in China, we are in an era of monetary tightening, so it will be difficult to get back to where it was when the central banks were easing. »
It should be noted that Tencent is not the only tech giant to see its title drop on the stock market. We thus mentioned last August the case of Alibaba, which had until then lost nearly 500 billion dollars in 2022. Note that the e-commerce giant now intends to make the Hong Kong stock exchange its main market, which has initially well received by investors, although the stock subsequently continued to fall.
Source: Presse-Citron
I am a technology author with 8 years of experience in journalism. My writing covers the latest technology advancements and trends, drawing on my expertise in news journalism and social media platforms. I have contributed to major media outlets such as The New York Times, The Wall Street Journal, and Reuters.
