Tencent's $60 Billion Rout Hits Hong Kong at Worst Possible TimeBy
What a day to dump almost $10 billion worth of Tencent Holdings Ltd.’s stock.
A selloff in Hong Kong’s technology giant is weighing on the Hang Seng Index just as trade war prospects prompt equity traders to flee anything with a hint of risk. The gauge is among the world’s worst-performing major equity benchmarks this week, along with a measure of Chinese companies trading in the city.
Tencent shares are down 10 percent in the past two days after it warned that spending may weigh on margins and Naspers Ltd. sold a chunk of its stake at a discount. That’s set it up for the biggest back-to-back decline since 2011.
After this week’s wipeout -- nearing $60 billion in value -- Tencent no longer commands the biggest influence on the Hang Seng Index, where weightings are capped at 10 percent. HSBC Holdings Plc, although smaller by market value, is now more heavily weighted on the city’s benchmark.