China’s Tencent slumps to new low as HK stocks dive

This article first appeared in The Edge Financial Daily, on October 12, 2018.
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HONG KONG: Shares of Chinese technology giant Tencent plummeted by more than 7% yesterday, amid a sell-off in the Hong Kong stock market driven by a US stock market rout.

Shenzhen-based Tencent — one of the largest tech firms in China and famous for its WeChat social media platform — has been battling a series of bad news this year, including a regulatory crackdown on online games.

Yesterday’s dive was the 10th consecutive day of losses, and shares have tumbled more than 40% since January.

Tencent shares fell HK$21.20 (RM11.25) to HK$265.2 in yesterday morning’s trading, the lowest price since the group listed in Hong Kong in 2004.

In August, the tech giant reported a rare quarterly drop in net income amid the regulatory squeeze — the first drop in profit in at least a decade. On Wednesday, Bloomberg said the group had lost its slot as one of the world’s top 10 biggest companies, after losing US$200 billion (RM831.86 billion) in market value this year.

Tencent’s place in the list was replaced by Exxon Mobil.

The benchmark Hang Seng Index dropped more than 4% at the opening yesterday following the worst session on Wall Street for months, as US traders fretted about surging interest rates. — AFP