Home StocksAsia Tencent’s billionaire founder Pony Ma No Issues with Regulators, Time to Buy

Tencent’s billionaire founder Pony Ma No Issues with Regulators, Time to Buy

by S. Jack Heffernan Ph.D

Tencent’s billionaire founder Pony Ma — China’s second richest man — has met with anti-monopoly regulators and agreed his firm will be “as compliant as possible,” after rival tech giant Alibaba was battered by legal woes.

Tencent, which owns the super-app WeChat and a lucrative gaming empire, is the latest tech conglomerate to fall in the crosshairs of China’s regulators.

They have launched a blitz on apparent anti-competitive practices, threatening to slice up supersized firms whose reach now stretches into the daily finances of the public.

Ma, also known as Ma Huateng, said he would “actively cooperate with regulatory authorities and be as compliant as possible” during a news briefing late Wednesday on Tencent’s annual results, reported Chinese financial outlet Yicai.

Martin Lau, Tencent’s president and executive director, also said they had met with the government several times to discuss anti-monopoly efforts and hoped to create a “healthy environment” to foster innovation.

“Tencent has throughout attached high importance to compliance,” he was quoted as saying.

The company’s shares slumped 5 percent from $80.93 to $76.81 by close of trading Wednesday.

But it reported a jump in revenue of 26 percent to 133.67 billion yuan ($20.5 billion) last quarter, boosted by strong gaming sales during the pandemic.

Authorities last year halted a record $34 billion initial public offering by fintech provider Ant Group, owned by Tencent’s nearest rival Alibaba.

They called in its billionaire founder Jack Ma and then opened an investigation into Alibaba business practices deemed anti-competitive.

Ant was then instructed to transform into a financial holding company that is subject to more regulatory restrictions.

Since then, the normally flamboyant and outspoken Ma has kept a low profile as the dragnet widens to include competitors.

Alibaba has been under pressure to divest its media assets as government officials are worried about its growing public influence, the Wall Street Journal reported last week.

In the past few months, regulators have also fined more than a dozen tech firms — including Tencent — for practices such as undisclosed acquisitions. Last week they summoned 11 tech firms for talks on cybersecurity.

You may also like


Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.