Tencent Extends Internet Stock Rout as Valuation Concerns Deepen
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Tencent Holdings Ltd. slumped to a two-month low and a gauge of Asian Internet companies erased its advance for the year amid growing concern that valuations overshot earnings prospects.
Tencent tumbled 4.5 percent to HK$501.50 at the close in Hong Kong, paring its gain during the past five years to 698 percent. The Bloomberg Asia Pacific Internet Index slid 3.8 percent, extending its decline from a March 6 high to 15 percent and its lowest level since Dec. 26. SoftBank Corp., which owns a stake in Alibaba Group Holding Ltd., sank 4.6 percent in Tokyo. Naver Corp. declined 6.5 percent in Seoul.