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The main culprit can be attributed to the central government crackdown on the tech sector which almost kills the likes of Alibaba, Meituan and other listed tech companies. They have all suffered a fall in share prices of 50-65% from its peak.
In Tencent case, the withdrawal of its largest shareholder sent shivers to many retail investors who had been a great fan and support of Tencent for a long time. Hedge funds and other investment banks are either pulling out or putting their brakes on investing in China.
Nobody can read the mind of the Chinese government and their sudden and abrupt decision to interfere the private sectors to such a large extent had cause much commotion in the business community. Now, we hear the government is making a 180 degrees turn and declare they will be supporting the platform economy after slapping fines on both the two biggest companies , Alibaba and Tencent.
Of course, we can understand how scary it must be if these private companies become a monopoly and with hundreds of millions of users, they can control the mind of these people. It is not something any government wants. So, naturally , the government wants to step in and have a say , to have some form of control before things get too big, too ugly to handle later.
I will be watching closely 382 price level as that was the previous resistance level. Twice it has failed to break above (Jan and Apr 2023). Also, it will be releasing its quarterly earnings soon and that could be a catalyst for the share price to go higher. Let's wait and see, no hurry.....
The main culprit can be attributed to the central government crackdown on the tech sector which almost kills the likes of Alibaba, Meituan and other listed tech companies. They have all suffered a fall in share prices of 50-65% from its peak.
In Tencent case, the withdrawal of its largest shareholder sent shivers to many retail investors who had been a great fan and support of Tencent for a long time. Hedge funds and other investment banks are either pulling out or putting their brakes on investing in China.
Nobody can read the mind of the Chinese government and their sudden and abrupt decision to interfere the private sectors to such a large extent had cause much commotion in the business community. Now, we hear the government is making a 180 degrees turn and declare they will be supporting the platform economy after slapping fines on both the two biggest companies , Alibaba and Tencent.
Of course, we can understand how scary it must be if these private companies become a monopoly and with hundreds of millions of users, they can control the mind of these people. It is not something any government wants. So, naturally , the government wants to step in and have a say , to have some form of control before things get too big, too ugly to handle later.
I will be watching closely 382 price level as that was the previous resistance level. Twice it has failed to break above (Jan and Apr 2023). Also, it will be releasing its quarterly earnings soon and that could be a catalyst for the share price to go higher. Let's wait and see, no hurry.....
Comment:
www.thestar.com.my/t...to-tencent-bytedance
Comment:
haha, there is an option 3 - ie it went back to the channel......