Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Tencent Holdings Limited
  6. News
  7. Summary
    700   KYG875721634

TENCENT HOLDINGS LIMITED

(700)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

China, Hong Kong shares tumble on regulatory clampdowns

07/26/2021 | 05:01am EDT
FILE PHOTO: A man wearing a mask walks by the Shanghai Stock Exchange building at the Pudong financial district in Shanghai

SHANGHAI (Reuters) - China and Hong Kong shares fell sharply to their lowest this year on Monday, as investor worries over government regulations battered stocks in the education, property and tech sectors.

The searing sell-off sent Hong Kong-listed Scholar Education Group shares crashing more than 45%. Hong Kong stocks of New Oriental Education & Technology Group Inc plummeted more than 47% after the company's U.S. shares lost over half of their value on Friday. The company provides tutoring and test preparation services in China.

On China mainland share markets, the CSI Education Index ended down 9.61% at its lowest close in 16 months.

The shakeout in China's $120 billion private tutoring sector follows Beijing's announcement on Friday of new rules barring for-profit tutoring in core school subjects to ease financial pressures on families. The policy change also restricts foreign investment in the sector through mergers and acquisitions, franchises, or variable interest entity (VIEs) arrangements.

The weekend also brought new regulatory moves targeting technology and property, sparking sell-offs in those sectors in Hong Kong and mainland markets on Monday.

Louis Tse, managing director at Wealthy Securities in Hong Kong, said the education curbs were needed to prevent "chaos" in a profitable sector.

"The Chinese government...in a way it's right, they want to put a heavy hand and try to regulate that industry to make it more acceptable," he said. "Of course investors...I won't say they suffer. They won't earn that much anymore."

China's blue-chip CSI300 index fell 3.22% to end at its weakest close since December, the Shanghai Composite Index declined 2.34% at a more than two-month closing low, and the Shenzhen Composite fell 2.28%.

Both the Shanghai and Shenzhen indexes were hit by heavy foreign-investor selling. Refinitiv data showed outflows of more than 9 billion yuan ($1.39 billion) from A-shares on Monday.

In Hong Kong, the Hang Seng index notched its lowest close since Dec. 22, 2020, down 4.13%. The Hang Seng China Enterprises index tumbled 4.92%.

Hong Kong's benchmark index was pummelled as tech shares plunged, with index heavyweight Meituan dropping 13.76% on the day. Alibaba Group Holding fell 6.38% and Tencent Holdings lost 7.72%.

The Hang Seng Tech index slumped 6.57%, nearly erasing all gains since its inception in July 2020.

China's market regulator said on Saturday that it would bar Tencent from exclusive music copyright agreements, and fined the company for unfair market practices in the online music market.

Government efforts to rein in an overheated property sector also spooked investors on Monday, sending the CSI 300 Real Estate index down 6.13% to its lowest close since September 2015, while the Hang Seng Properties index fell more than 3%.

Media reports that China's central bank has ordered lenders in Shanghai to raise the rate of mortgage loans for first-time homebuyers followed a statement from the housing ministry on Friday that China will strive to clean up irregularities in the property market in three years.

Shares in China Evergrande Group, the heavily indebted developer whose financing difficulties have stoked broader apprehensions about the outlook for the property sector, fell 6.34%. Evergrande shares have fallen by more than a third this month, and are down nearly 55% this year.

Fellow developer Country Garden Holdings Co dropped 3.39%.

"We believe China's economy, and specifically its financial system, will face significant risks in coming months due to the unprecedented tightening measures applied to the property sector," economists at Nomura said in a note on Monday.

Graphic: China cracks down on tech, tutoring and property -

($1 = 6.4841 Chinese yuan)

(Reporting by Andrew Galbraith; Editing by Shri Navaratnam and Jacqueline Wong)

By Andrew Galbraith


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -0.20% 148.4 End-of-day quote.-36.20%
CHINA EVERGRANDE GROUP 17.62% 2.67 End-of-day quote.-82.08%
COUNTRY GARDEN HOLDINGS COMPANY LIMITED 7.15% 7.64 End-of-day quote.-28.73%
MEITUAN 5.20% 242.6 End-of-day quote.-17.65%
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. 7.52% 15.44 End-of-day quote.-88.91%
SCHOLAR EDUCATION GROUP -0.64% 1.55 End-of-day quote.-88.08%
TENCENT HOLDINGS LIMITED 2.93% 463.2 End-of-day quote.-17.87%
All news about TENCENT HOLDINGS LIMITED
06:18aDAVID LI : Exclusive-China is unlikely to approve Baidu's $3.6 billion purchase of JOYY's ..
RE
01:43aChinese gaming firms vow self-regulation amid crackdown on teen addiction
RE
12:07aDELIVERY HERO : To Invest $200 Million In Grocery Startup Gorillas
MT
09/23SAIC MOTOR : General Motors to Invest $300 Million in SAIC, Tencent-Backed Autonomous Driv..
MT
09/23Abroad-focused Chinese Firms Show Path to Growth in Tech Crackdown
DJ
09/23China stocks rise, Evergrande's assurances lift real estate
RE
09/22Carlyle CEO says firm is committed to China
RE
09/22Softbank to Take More Cautious Approach to China Investments
MT
09/21China's Mobile Gaming Market Logs 8.2% Revenue Growth in August
MT
09/21China's Cloud Infrastructure Spending Maintains Growth in Q2 Despite Tech Crackdown
MT
More news
Analyst Recommendations on TENCENT HOLDINGS LIMITED
More recommendations
Financials
Sales 2021 579 B 89 539 M 89 539 M
Net income 2021 150 B 23 169 M 23 169 M
Net cash 2021 136 B 21 063 M 21 063 M
P/E ratio 2021 24,8x
Yield 2021 0,41%
Capitalization 3 661 B 567 B 567 B
EV / Sales 2021 6,09x
EV / Sales 2022 4,96x
Nbr of Employees 94 182
Free-Float 62,4%
Chart TENCENT HOLDINGS LIMITED
Duration : Period :
Tencent Holdings Limited Technical Analysis Chart | 700 | KYG875721634 | MarketScreener
Technical analysis trends TENCENT HOLDINGS LIMITED
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 52
Last Close Price 384,33 CNY
Average target price 540,85 CNY
Spread / Average Target 40,7%
EPS Revisions
Managers and Directors
Hua Teng Ma Executive Chairman & Chief Executive Officer
Chi Ping Lau President & Executive Director
Shek Hon Lo Chief Financial Officer & Senior Vice President
Chen Ye Xu Chief Information Officer
Yu Xin Ren COO & President-Interactive Entertainment Group
Sector and Competitors
1st jan.Capi. (M$)
TENCENT HOLDINGS LIMITED-17.87%566 791
PROSUS N.V.-19.90%264 229
NETFLIX, INC.9.71%262 574
AIRBNB, INC.19.30%108 483
UBER TECHNOLOGIES, INC.-10.82%85 700
DOORDASH, INC.52.01%73 332