Lowest company price due to concerns about China’s economy.
As investor confidence changed negatively due to worries over China’s macroeconomic prospects, Tencent Holding Ltd. is on track to close at its lowest level in five years.
WeChat’s operator shares dropped 5.3% in Thursday’s Hong Kong trade, approaching HK$235 per share, their lowest level since early 2017.
China reiterates its commitment to a strict COVID-Zero policy.
The decline coincided with a general decline in Chinese shares this week due to worries about their earnings outlook after China postponed the release of important economic figures and reiterated its dedication to a strict COVID-Zero policy.
On Wednesday, the Nasdaq Golden Dragon China Index, which monitors a collection of US-traded Chinese tech equities, hit its lowest point since 2013.
Given the constantly shifting circumstances, Tencent executives have taken action to increase their bottom line by reducing expenses and shutting down non-core businesses. They have also stated that their top strategic priorities will be international gaming, cloud software, and short videos similar to TikTok for WeChat.