Tencent Stocks Dip Amid China’s Anti-Trust Crackdown

March 12, 2021 11:59 PM AEDT | By Shreya Biswas

Tencent Stocks Dip Amid China’s Anti-Trust Crackdown

China’s Crackdown On Fintech Giants

The Chinese government-led crackdown on fintech players sparked about four years ago, when state-run bank regulators made Jack Ma impose deposit limits in his money market fund, Yu'e Bao. But the real deal came much later, in December 2020, when the Communist government declared that it will be keeping a close watch on “monopoly businesses” for “disorderly expansion of capital”.

Weeks after the unexpected halting of Ant Group’s US$35 billion initial public offering, Jack Ma’s Alibaba Group became the first target of an anti-monopoly probe.

Source: Pixabay

Over the following months, China broaden its crackdown on tech giants with more regulations to curb their “unregulated” expansion of wealth and monopoly.

Reports quoting unnamed sources claim that the Chinese regulators now have their eyes on Tencent, which may now have to make operational changes in its fintech business.

Tencent’s Stock & Financial Performance

Despite all the changes that came in with the new regulations, Tencent saw its stocks rise about 23 per cent over the last six months.

While the stock dipped on the Hong Kong Exchange on Thursday, its American depositary receipt (ADR) was up by nearly six per cent.

On the financial front, the Shenzhen-based company recorded a 29 per cent year-over-year (YoY) growth in its total revenues of RMB 125,447 million in 2020 third quarter. Tencent’s profit for the period climbed 27 per cent YoY to RMB 33,325 million.

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