Tencent Slump Shows What Happens When Beijing Flips the Switch
- ‘If it can happen to Tencent, it can happen to anyone.’
- Internet giant has lost more than $165 billion in market cap
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China long celebrated Tencent Holdings Ltd. as a national champion. Now, the tech giant is getting a taste of what it’s like to be on the other side of government patronage.
Tencent tumbled on Thursday after reporting its first profit drop in a decade as Chinese authorities froze approval of digital games the company needs to make money. Once the most valuable company in Asia, Tencent has seen its market cap fall by more than $165 billion since January.