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Ma Huateng, also known as Pony Ma, is the founder and Chief Executive of Asia tech major Tencent Holdings Ltd. Mr Huateng is among the top six richest Asians – just one rank below Jack Ma of Alibaba Holding Ltd.
But he seem to be running out of luck as China continues to crack down on the country’s mega tech companies. Officially it is being done under the garb of fair play. But then these are the same companies, which China turned a blind eye to in the past – while the country was trying to rebrand itself away from its communist legacy. Many have been alleging that these actions are vindictive in nature.
As part of its action, last month, the State Administration for Market Regulation (SAMR) imposed a fine on Tencent, besides asking it to surrender its exclusive music licence, citing the alleged reason of monopoly.
Since then, shares of the company have tumbled. In Hong Kong, where the company is listed, its scrips have crashed 18.30% in the past one month. The crash had impacted the valuation of the company, as well. For a brief point in time – in early August – the company lost its tag to Taiwanese firm – Taiwan Semiconductor Manufacturing Corp (TSMC). But that was short-lived.
However, when Tencent’s stocks rallied over 4% yesterday on basis of speculation, it reclaimed its top slot as Asia’s most valuable company. The company is worth little over US$573 billion now.
But what does it mean for Pony Ma?
Well, Mr Huateng’s wealth is directly proportional to state of the stocks of Tencent – the higher the scrips go, the richer he is and vice versa. Since the Chinese government cracked down upon his firm, he is said to have lost US$14 billion of his wealth, much more than Jack Ma lost despite Alibaba coughing up a record fine.
In the current year, on a year-to-date basis, Mr Huateng has lost 17% of his wealth and is currently worth US$46.9 billion.
