That was in contrast with a quarter ago, when they stressed the new antitrust rules focused more on transaction-based platforms than on Tencent’s entertainment businesses. Asked whether Tencent’s core gaming and entertainment businesses might attract antitrust regulators’ attention, executives pointed to the sheer number of competitors. Lau acknowledged companies like Tencent tread a fine line between public duty and profit motive as they get larger, but the “boring answer” was to remain compliant and stay in touch with the government. But the fourth-quarter “numbers serve as a reminder that the business remains in very robust shape.” “It was telling that several questions on Tencent’s quarterly call were directed at regulatory risks, and it’s hard to argue against the idea that this could remain an overhang for Tencent’s share price performance,” Bernstein analyst Robin Zhu wrote in a research note. Read more: China Tech Giants Dive as Delisting Threat Joins Crackdown Fears rout, as regulators revived threats to toss China’s largest corporations off American bourses. Technology stocks also declined following a U.S. Tencent’s shares slid more than 5.6% in Hong Kong Thursday, their largest intraday fall in two months, worsening a $180 billion selloff in Asia’s biggest company since its January peak. This month, President Xi Jinping warned he will go after “platform” companies that amass data and market power, a sign the internet crackdown isn’t limited to Ant and its backer Alibaba Group Holding Ltd. Regulators are said to be considering forcing the firm to overhaul its promising fintech division in a similar fashion to Jack Ma’s Ant Group Co. Executives reiterated that the company has always been cautious and compliant with fintech regulations and it will stick with its normal practice of acquiring minority stakes in Chinese startups, while regulators pore over past deals.īeijing is widening a crackdown on the country’s largest corporations, fearful of their growing clout after years of relatively unfettered expansion. President Martin Lau acknowledged founder Pony Ma called on regulators recently but said that it was voluntary and part of a series of regular meetings. played down the impact of Beijing’s heightening scrutiny over China’s biggest internet firms, saying a potential revamp of its $120 billion fintech wing should have little impact on its business.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |