Tencent has had a horrid year, even by tech industry standards. One year ago, the Hong Kong-listed social media group overtook Facebook in terms of market capitalisation. Today, it is worth 80 per cent of its Silicon Valley-based peer, having struggled with regulatory roadblocks, increased competition and weak sentiment as a result of the China-US trade war.
Investors will be looking for further signs of damage when the company’s third-quarter results are announced on Wednesday.
Government interventions in gaming
Tencent dominates the gaming sector in China, but it has come under scrutiny from the Chinese government for the “addiction” it engenders in children. Since March, its gaming business has been hit by a bureaucratic process that has left thousands of games awaiting commercial approval. More recently, Beijing has set out additional plans to curb video game releases and time spent playing online.