Shares price of Tencent fall at U.S. tech sell-off amidst suspended gaming licenses
Oct 25, 2018 (China Knowledge) - Shares price of Tencent Holdings Ltd <700:HK> has taken a hit yet again. Regulators in China have suspended issuance of game licenses through a stopgap approval process, according to the report by Bloomberg yesterday.
The halt of gaming license approval has impeded Tencent’s ability to generate revenue from well-known game licenses purchased for the Chinese market that is worth USD 38 billion.
Previously, the government had introduced the green channel process, which the companies could use as a testing ground for latest games. However, this approval mechanism introduced during period of restructuring for the government, to review games for violence, gambling, and sensitive content; has been removed.
Besides this, shares price of Tencent were not spared from impact of tech sell-off in the U.S. yesterday.
The Nasdaq composite was hit by the deepening of tech sell-off yesterday as analyst were pessimist about the global economic outlook amidst a worsening trade war between the U.S. and China.
The Nasdaq composite was down 4.43% yesterday, closing at 7108.40. This was the 13th drop over the past 18 days. The NYSE FANG+ Index, which tracks some of the biggest tech names listed, was also down by 5.39%, closing at 2430.15.
Tencent shares closed at HKD 269.40, down 2.47%, one of the tech shares in Asia that are also affected by the tech sell-off in the U.S. yesterday.
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