Elizabeth Lam asked 3 months ago
Hi Rusmin,
Do you have any thoughts or concerns on the latest clampdown?
https://asia.nikkei.com/Business/Technology/Beijing-asks-Tencent-to-lower-WeChat-s-mobile-payment-market-share
Still think it is a very progressive company/business but it seems to be a lightning rod for regulatory action. Any thoughts on managing current/future holdings of Tencent, please.
Thanks again,
E L
1 Answers
Rusmin Ang Staff answered 3 months ago
Hi Elizabeth,
It is a rumor and we shouldn't make any decision based on this.
Similar to previous announcement on the spending cap for gaming spend which the government subsequently reversed (and fired the official) after it created massive panic. Chinese government has been trying to support private sector and this regulatory action, if implemented, is akin to shooting herself on the foot again. So I would take the rumor with a pinch of salt but no doubt that Chinese government would enforce this if they found out that Tencent is engaging in monopolistic behavior.
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