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Tencent Shares Tumble After Approaching $1 Trillion Valuation

  • Tuesday’s slump comes after the stock surged 11% on Monday
  • Traders spooked by asset bubble warnings, liquidity concern
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Tencent on Cusp of $1 Trillion Market Cap
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Tencent Holdings Ltd. slumped after a world-beating surge in the stock pushed its market value to the cusp of $1 trillion for the first time.

The Chinese Internet behemoth lost 6.3% in Hong Kong on Tuesday, putting its market capitalization below $890 billion. Traders took profit after Monday’s 11% rally, which was Tencent’s biggest in almost a decade. Adding to the caution were comments by an adviser to China’s central bank at a conference, reported by local media, indicating that excessive liquidity was creating asset bubbles.