Tencent's China Literature Sinks Amid Nation's Content Crackdown
- Stock that was once Hong Kong’s hottest IPO plunges to new low
- Another of its websites is under probe for alleged violations
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One of Tencent Holdings Ltd.’s most valuable investments is sinking as China expands its crackdown on online content.
China Literature Ltd., in which Tencent holds a controlling stake, tumbled as much as 10% before closing down 7.3% at a new low in Hong Kong, as another of its online sites was targeted for alleged violations. The stock has dropped more than 70% from a record high reached shortly after its debut in November 2017, when it was one of the city’s hottest new listings. It is still 45% below its initial public offering price.