Tencent Stock Plunges to 15-Month Low โCaixin Global
What happened: On Monday, Tencentโs stocks dropped to a 15-month low erasing almost a third of the companyโs market value ($216 billion) since its peak in January. Several factors have played a part in the drop including Chinaโs regulatory crackdown on gaming which is Tencentโs core business, the companyโs first quarterly profit decline in 13 years, a general low mood at Hong Kongโs and Shanghaiโs stock market, and the China-US trade tensions.
Why itโs 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.
