Tencent’s Record Buybacks Are Not Enough to End $43 Billion Rout
- Tencent has trailed Hang Seng Tech Index amid China selloff
- The stock remains most recommended with zero sell ratings
Tencent’s headquarters in Shenzhen.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Tencent Holdings Ltd. has returned about $24 billion to shareholders via buybacks and dividends this year. But even that won’t convince investors that it’s due for a turnaround following a $42 billion market value wipeout.
Shares of the Chinese gaming company have fallen more than 27% since its January high, trailing the Hang Seng Tech Index despite it buying back more shares than any other firm in Hong Kong this year. Investors remain cautious that broad global selling of Chinese assets and a sputtering economy will remain key pressure points.