Are you invested in Tencent or have you sold them off even before the gaming crackdown?
Tencent Leads $60 Billion Loss as Game Crackdown Expands (https://www.bloomberg.com/news/articles/2021-09...)
Previously the gaming crackdown didn't seem like such a big deal (reference to my previous post https://seedly.sg/posts/how-much-will-china-s-v...), but seems like Tencent is dealing with a huge blow.
Personally i have sold of my tencent shares before the suspension for new online games. My main reason being that gaming is considered a demerit good by the government. Thus, i expect further regulations to be implemented. Seeing as how gaming makes up a huge proportion of tencent's revenue, I expect tencent's growth to be impacted.
That being said, tencent has built an extremely attractive ecosystem of applications and have stakes in many great businesses, like a venture capitalist. So tencent's revenue seems sufficiently diversified to withstand future regulations.
what I am saying is that my reason for selling tencent shares is not that they are no longer a good company. But because I am simply not comfortable with the risks of future governemnt regulations (as current regulations seem very sweeping and harsh). Personally I feel more comfortable putting my money in safer options such as A shares ETF (CNYA) or a broader ETF such as MCHI that still gives me exposure to big tech companies.
However, I do believe that Alibaba and tencent will make excellent investments if they successfully navigate these regulations and continue to keep close tabs on them.
Just my two cents but hope it helps!
I am still invested in Tencent and bought more during the dip (crackdown). Will be holding on to it ...
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