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Tencent wipes out $62b, just like thatINTL

Tencent wipes out $62b, just like that

Tencent Holdings pulled off a Tesla and suffered a $62b (daaaaamn!) wipe out after shares fell for a second day in a row! Its stock in Hong Kong fell 4.4% last Friday, followed by a further 4% loss this Monday, after Tencent was fined last week for failing to seek prior approval for certain activities.

This was reportedly fuelled by concerns that the Chinese conglomerate (which is also Asia’s most valuable company) will become regulators’ next target of increased supervision. The huge loss decimated most of the value of Tencent’s FinTech business (maybe CEO Pony Ma should call Elon Musk for recovery advice?).

why it matters
China has been escalating its scrutiny and regulation of tech giants to tackle economic monopolies. This is a movie we’ve seen play out before when the government clamped down on Jack Ma’s Ant Group. Much like Ant, it is likely that Tencent will have to undergo an overhaul of its FinTech business, shifting it to a financial holding company.