How this Chinese tech giant lost $32 billion, why more losses in store
The Chinese government issued new guidelines and curbs for gaming companies, impacting Tencent Holdings. Tencent's stock value dropped by $32 billion, 8% below pre-announcement level. Concerns raised about impact on Tencent's gaming business, which contributed 21% of total revenue in Q3. However, JPMorgan analyst believes regulations aim to curb excessive spending, not stifle overall consumption. Tencent launched "Dream Star" to gain market share and adjust practices. Tencent's aggressive share buyback program continues. Investors cautious about future performance due to proposed regulations.
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