Tencent announced its 4Q result this Wednesday, after market closed.   Company president, Martin Liu, said earnings growth would be “certain” to slow. The news trigger a sale off from investors.  Its share price dropped over 10% the next day in Hong Kong, the largest fall in almost two years.

Tencent’s fall also affect its major shareholder, South Africa’s Naspers. which owns a 30 percent stake.  Naspers’ share price dropped 4.4% on Thursday and another 3.12% on Friday, becoming the biggest percentage loser among Johannesburg’s Top-40 index of blue chips .

But is Tencent’s result really that bad ??  The company posted a fourth-quarter profit increase of 46 per cent, which is generally inline with investors’ expectation. (Its net profit is Rmb 2.2 billion, compared with Rmb 2.24 billion average estimate of nine analysts compiled by Bloomberg.)  What really worried investor is its president’s remark of “slower growth”.

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...