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Businesses The Almighty Buck

Tencent Is World's Worst Stock Bet With $170 Billion Wipeout (bloomberg.com) 55

Posted by msmash from the what-in-the-world dept.
China's unprecedented crackdown on its technology industry has turned Tencent Holdings from a market darling into the world's biggest stock loser this month. From a report: The Chinese Internet giant had tumbled 23% in July as of Wednesday, set for its worst month ever after erasing about $170 billion of market value. That marks the fastest evaporation of shareholder wealth worldwide during this period, Bloomberg data shows. Nine of the top 10 losers in shareholder value this month are Chinese companies, including Meituan and Alibaba Group Holding. Tencent's shares rebounded by 7.1% on Thursday morning, tracking broader gains in Chinese stocks after Beijing intensified efforts to alleviate concerns about its crackdown on the private education industry. The Shenzhen-based firm is one of the key casualties of an official campaign that targets some of the nation's tech behemoths considered posing a potential threat to China's data security and financial stability. The selloff in its shares intensified earlier this week after Beijing broadened the regulatory clampdown to include other once high-flying industries such as private education.
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Tencent Is World's Worst Stock Bet With $170 Billion Wipeout More

Tencent Is World's Worst Stock Bet With $170 Billion Wipeout

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  • 23% I've made worse bets than that... (Score:2, Funny)

    by Anonymous Coward

    Was kicking ass until Febrary, when for some reason my strategy of impulsiveness combined with ignorance stopped working...

    Been crawling back up with safe stocks only giving me a modest return (and a good night's sleep).

    It's nice to not wake up and wonder if you betting your life savings based on the rantings of a youtube celebrity may have been a bad decision.

    I do miss the good old days back when ignorance was a winning strategy though...

  • Earth to China (Score:5, Insightful)

    by Pollux ( 102520 ) <speter AT tedata DOT net DOT eg> on Thursday July 29, 2021 @02:58PM (#61635251) Journal

    This is why your economy isn't #1 in the world. Because investors won't put their money into a country when the country can arbitrarily destroy any company it wants overnight.

    • Re: (Score:1, Offtopic)

      by Tablizer ( 95088 )

      This is why [China] economy isn't #1 in the world. Because investors won't put their money into a country when the country can arbitrarily destroy...

      You think the USA is immune from chaos? [wikimedia.org]

      • I suspect the Chinese government has decided companies should not be too big to cause problems. I actually think it's the right solution, but for the wrong reasons. In general, I think the path to smaller government leads through smaller companies, but it is safe to wager that Xi doesn't plan to make the Chinese government smaller.

        On the general topic I think this cartoon is the best joke I've seen lately.

        https://www.smbc-comics.com/co... [smbc-comics.com]

        No actual value was lost in the repricing of Tencent shares. Just a ch

        • Re: (Score:2)

          by teg ( 97890 )

          []. In general, I think the path to smaller government leads through smaller companies,[]

          Why?

          Consolidation and monopolies are the most profitable way to organize, so if government backs off on regulation, the big will get bigger.

          • You're just restating the problem, but I see the solution as more freedom.

            Perhaps the root of the crisis is linguistic confusion in English? Freedom is not free. There are costs such as competition-related inefficiencies, learning-related costs for newcomers creating a business, and even shutdown-related expenses for losers going out of business, even bankrupt. There are even times when freedom gets paid for with blood.

            Or are you asking for a summary of my proposed anti-bigness pro-freedom tax system? Even

    • Be interesting to see if they can hold out over the long term.

      Money tends to prevail.

    • Re:Earth to China (Score:5, Insightful)

      by allcoolnameswheretak ( 1102727 ) on Thursday July 29, 2021 @04:49PM (#61635705)

      This is why your economy isn't #1 in the world. Because investors won't put their money into a country when the country can arbitrarily destroy any company it wants overnight.

      This is one of the things that give me hope that democracies and free societies will continue to flourish and dominate the 21st century, despite the recent rise and growing influence of China.

      The autocratic system is efficient in some respects - it's easy to get things done when the great leader is only surrounded by fearful yea-sayers. But ultimately it is self-defeating, because you need freedom of thought and unshackled critical thinking to make real progress and create great innovations. But of course the autocrats can tolerate that only up to a certain point, until they are threatened in their illegitimate rule and feel the need to clamp down.
      Creative thinkers and entrepeneurs like Elon Musk will not move to a repressive country like China to build their industries that generate progress.

      This is why most modern innovations happened during the Age of Enlightenment and continue to happen in the West.

      • Re: (Score:2)

        by ghoul ( 157158 )
        Its not like Alibaba and Tencent founders are any less autocratic inside their own companies. Part of the reason Xi is getting away with this is the Chinese oligarchs have pissed off the public with their slave driving and monopolizing of the riches. At least the oligarchs in the US spread the wealth to a certain extent through stock options.
      • The West is crushing the life out of freedom of thought and unshackled thinking. Wokeism's creed is "there's only one right way to do it." Critical Theory is far worse than we ever thought, and compared to it, China is a paradise of free speech. After all, they only care if you mess with the Party, they don't care what you do in your personal life. There have already been laws passed that regulate your own speech in your own home. [yahoo.com]

      • This is why most modern innovations happened during the Age of Enlightenment and continue to happen in the West.

        Internet and finance based companies have not innovated as much as their market valuation suppose. The West has been in continual decline as it swaps technological innovation with get rich quick schemes.

        Meanwhile, China is placing huge bets on fusion, quantum computing, and AI, and they all seem to be making some progress.

        The Western mindset is an apocalyptic one. They think everything is heading towards a finish line and the winner takes all, and nothing can change. In the East, and we're not just ta

      • Re: (Score:2)

        by MrL0G1C ( 867445 )

        Except of course Winnie the Poohead isn't a great leader, he's seriously paranoid, he's crap at dealing with corruption and he's committing genocide.

      • Musk has opened a Tesla factory in China.

    • China cranked up communism to level 11 after the CCP's 100th anniversary. Communist gonna be communist.

    • Re: (Score:1)

      by rtb61 ( 674572 )

      Quite simply. The government of China is not fucking about, to big to fail, is to dangerous and to great at threat to the rest of the economy and society.

      The drop in prices reflects to big to fail, losing pieces of itself to the rest of the economy, until it is most definitely not to big to fail and it's power in the economy and been safely curtailed to more reasonable levels.

      Think your corporation has to the power to dominate government, what organs do you have to donate, no fucking about.

      The China econom

    • Again, Westerners don't understand the East.

      No one in the East cares about being #1. That is some mindset Westerners can't get out of - they have to be #1, and they'll crush anyone who threatens their position.

      In China's case, all the CCP cares about is that private grumblings do not escalate into large scale revolts. Which means in part not to let stock markets get out of control. Tencent's stock value, just like all stock value, is meaningless because there is no frickin' way they can actually make

  • Good. (Score:3)

    by waspleg ( 316038 ) on Thursday July 29, 2021 @03:00PM (#61635267) Journal

    Stop selling them the rope to hang us with.

    PS, You can't legally own anything in China as a foreigner. Never forget.

    • you cant legally own land as a Chinese citizen, its leased from the government. Dont even think about owning anything as a citizen of China.
  • Tencent is the new march of dimes to nothing. Not even worth ten cents. Ellith.

  • I wonder how many member inside the Chinese government shorted the stock.

  • At the beginning, there weren't any 170 billions to start with, so we are back to status quo after the imaginary stock value pumping. The company is not shutting down, they will continue doing what they were doing. The only concerned by this news are those who are participating in the stock market gamble (personally, I prefer horse racing).

  • The Shenzhen-based firm is one of the key casualties of an official campaign that targets some of the nation's tech behemoths considered posing a potential threat to China's data security and financial stability.

    No, it's about posing a potential threat to the ability of the Chinese Communist Party to control people in China, even very rich ones. This is all about threatening people in China by ensuring that no-one is too powerful to be independent. Beating up a few to encourage compliance by the others. Company leaders are required to cooperate entirely with the CCP, and the CCP will not allow independent organisation or group actions, or the potential of any of those, by anyone in China.They are particularly inten

    • The term is "State Capitalism", even though that's an oxymoron as you cannot have Capitalism without maximizing liberty, but you can't expect accurate or honest terminology from Marxists.

      I think you're hitting that nail right on the head otherwise. The good part is that this is kind of desperate and not at all good for their economy. Well, I guess it's good for the kind of economy they want, but since that system doesn't work...

  • China is only hurting itself. Wait, scratch that. The CCP is hurting China, and this is not a surprise, in order to maintain power over the nation. Again.

    If they want to cripple their own economy, I can't help but think that's in the best interests of the rest of the world. If the rest of the world and the Chinese people are really lucky, this is a sign that the CCP is on the verge of collapse, lashing out in a desperate attempt to prevent anyone else from having power, hastening its own demise in the

  • Let's make money off this.

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