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Briefing: Tencent stocks drop to lowest point in 15 months
Tencent Stock Plunges to 15-Month Low —Caixin Global
What happened: On Monday, Tencent’s stocks dropped to a 15-month low erasing almost a third of the company’s market value ($216 billion) since its peak in January. Several factors have played a part in the drop including China’s regulatory crackdown on gaming which is Tencent’s core business, the company’s first quarterly profit decline in 13 years, a general low mood at Hong Kong’s and Shanghai’s stock market, and the China-US trade tensions.
Why it’s important: Tencent announced a strategic upgrade ten days ago which involves the establishment of two new business divisions. This is the third large-scale restructure that Tencent has undergone since its founding 20 years ago after the last one 6 years ago. The company also bought back its shares for a 19th straight session.