Streetbeat News

TCEHY

Tencent Holdings Ltd.

https://www.tencent.com/

CEO

Huateng Ma

Employees

116,213

Tencent Holdings Ltd. is a Chinese multinational technology and entertainment conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimedia companies in the world based on revenue. It is also the largest company in the video game industry in the world based on its investments, with Tencent Games being the subdivision of Tencent Interactive Entertainment Group (IEG) focused on publishing of games.

Open

53.89

Mkt cap

488B

Volume

879K

High

53.90

P/E Ratio

23.88

52-wk high

62.57

Low

52.86

Div yield

0.01

52-wk low

33.00

Huawei's new laptop, the Qingyun L540, uses a 5-nanometer chip made by Taiwan Semiconductor Manufacturing Co (TSMC) in 2020, refuting claims of Chinese chipmaker SMIC's advanced fabrication capabilities. Despite U.S. sanctions, Huawei had previously released a smartphone with a 7nm processor by SMIC. Huawei's technological progress, including the Mate 60 smartphone, has helped it compete with companies like Apple and challenge Western tech reliance. Huawei's use of an older TSMC chip suggests stockpiling efforts due to U.S. restrictions. TSM shares saw a slight premarket decline.

Portfolio Pulse from Anusuya Lahiri

January 05, 2024 | 2:02 pm

Alibaba Group Holding Ltd (NYSE:BABA) has faced a challenging year with setbacks including a $2.8 billion fine for monopolistic behavior, a drop in U.S. market value below competitor PDD Holdings Inc (NASDAQ: PDD), and a significant share price decline. Alibaba withdrew plans for a public listing of its cloud unit and faces stiff competition from Huawei and Tencent Holding Ltd (OTC:TCEHY). Despite challenges, optimism remains for Alibaba's future. JD.com Inc (NASDAQ:JD) and Alibaba's Taobao implemented a 'refund only' policy, mirroring Pinduoduo's strategy, which has led to concerns among sellers about potential abuse.

Portfolio Pulse from Anusuya Lahiri

January 04, 2024 | 1:08 pm

TikTok, owned by ByteDance Ltd, is planning a significant expansion of its U.S. e-commerce operations with a revenue target of $17.5 billion, challenging Amazon (AMZN) and other e-commerce platforms like PDD Holdings Inc's Temu and Shein. TikTok Shop, which integrates shopping with short videos and live streams, is expected to increase merchandise volume by 2024. ByteDance's revenue grew by 30% in 2023, surpassing $110 billion. The expansion includes increasing seller fees to boost sales after a reported loss in the e-commerce vertical last year. TikTok's U.S. user base of 150 million could impact the e-commerce landscape.

Portfolio Pulse from Benzinga Neuro

January 04, 2024 | 4:55 am

Feng Shixin, a key official in China's gaming regulatory body, has been removed from his position following backlash over proposed gaming regulations. These regulations had previously led to a significant drop in market value for major gaming companies like Tencent Holdings Ltd and NetEase Inc, with nearly $80 billion wiped off their combined market value. The stringent regulations, aimed at curbing spending and gaming incentives, were particularly challenging for smaller developers and the industry as a whole, which saw a contraction in revenue for the first time in 2022. However, following the market slump, Chinese regulators have indicated a potential revision of the rules, leading to a recovery in the shares of the affected companies.

Portfolio Pulse from Benzinga Neuro

January 03, 2024 | 5:58 am

David Wallerstein, Tencent Holdings Ltd.'s Chief Exploration Officer, is stepping down to become a senior adviser, focusing on climate and human health. This change comes amid China's regulatory crackdown on tech and gaming, which has caused significant market value losses for companies like Tencent. The company's shares dropped over 6% since the announcement of new gaming regulations on Dec. 21, indicating a challenging period ahead for the sector.

Portfolio Pulse from Franca Quarneti

December 29, 2023 | 3:51 pm

Foreign investors have withdrawn $29 billion from Chinese equity markets in 2023 due to growth concerns and real estate sector losses. The Shanghai Composite, China A50, and Hang Seng indices have all seen significant declines. BlackRock's iShares MSCI China ETF (MCHI) and iShares China Large-Cap ETF (FXI) have also experienced substantial drops in value. The People's Bank of China (PBoC) is under new oversight and is attempting to support the economy. Fund managers consider China's real estate sector a potential source for systemic credit events, and short-selling on Chinese equities has become a crowded trade. New York-listed Chinese stocks like Tencent (TCEHY) and Alibaba (BABA) have also seen their values decrease this year.

Portfolio Pulse from Neil Dennis

December 28, 2023 | 3:23 pm

Chinese regulators have proposed revisions to stringent video game rules, leading to a brief recovery in shares of gaming companies like Tencent Holdings and NetEase, Inc. The National Press and Publication Administration of China approved 105 new game licenses for December, which saw Tencent and NetEase shares increase by 5% and 10%, respectively. Despite this, concerns remain over the regulatory impact on the market. Smaller gaming companies saw lesser gains, and various firms have started share buyback plans with limited market impact. Alibaba Group Holding Limited has faced an 18% loss year-to-date amid leadership and organizational restructuring, while PDD Holdings Inc continues to grow its market share.

Portfolio Pulse from Anusuya Lahiri

December 27, 2023 | 2:15 pm

NIO Inc. (NYSE:NIO) has completed a $2.2 billion strategic equity investment from CYVN Investments RSC. CYVN now holds a 20.1% ownership stake in NIO and can nominate two directors to NIO's board. The investment will help NIO enhance its balance sheet, brand positioning, sales, service capabilities, and invest in core technologies amid a competitive EV landscape. Tencent Holding Ltd. (NASDAQ:TCEHY) previously sold shares to CYVN as part of the investment.

Portfolio Pulse from Nabaparna Bhattacharya

December 27, 2023 | 11:13 am

Despite expectations that the AI boom would drive up cloud services spending in China, the reality has been underwhelming. Alibaba (BABA) reported only a 2% YoY revenue growth for its cloud business, and scrapped plans for a public listing of its cloud operations. Huawei and Tencent (TCEHY) did not disclose their cloud revenues. The Chinese cloud market's growth slowed to 10% in 2022, down from 45% in 2021. The U.S. is scrutinizing AI technology, with Nvidia Corp. (NVDA) facing examination for its AI accelerators intended for the Chinese market.

Portfolio Pulse from Benzinga Neuro

December 27, 2023 | 8:57 am

Shares of Tencent Holdings Ltd (OTC:TCEHY) and NetEase Inc (NASDAQ:NTES) rebounded after China's National Press and Publication Administration (NPPA) signaled a softer regulatory stance on gaming. Tencent's shares rose by 3% and NetEase's by 14% after the NPPA announced the approval of 105 new domestic online games, including titles from both companies. This comes after a draft regulation aimed at curbing in-game spending caused a sharp decline in gaming stocks. The NPPA's recent actions suggest continued support for the industry despite regulatory concerns.

Portfolio Pulse from Benzinga Neuro

December 27, 2023 | 4:50 am

All corporate logos and prices are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.