Double whammy

11 October 2018 By Robyn Mak Follow @mak_robyn

A tech rout has hit the Chinese giant harder than U.S.-listed rivals like Alibaba. Tencent’s loss is increased by its exposure to fickle mainland punters and a large emerging market weighting. But boss Pony Ma’s top problem is a regulatory crackdown undermining the core business.

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Shares of Chinese gaming and social media company Tencent fell as much as 5 percent to HK$272 on Oct. 11 during early morning trading in Hong Kong, amid a broader selloff in global technology stocks.

U.S.-listed rival Alibaba closed down 5.9 percent to $138.29 on Oct. 10, as the S&P 500 and Dow Jones Industrial Average marked their biggest daily decline since February.

As of Oct. 10, Tencent had lost $229 billion in market capitalisation from a January peak, representing a 40 percent drop.

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