• Tencent shares have hit multi-month highs due to regulatory ease.
• The stocks have nearly doubled since October 2022, pushing them back to the list of the most valuable companies in the world.
• Chinese tech industry faced a squeeze due to fears of monopolization, causing the stocks to drop to their lowest price point since 2017.
The Chinese multinational internet giant Tencent Holdings Ltd (HKG: 0700) has seen major success with their stocks hitting multi-month highs due to regulatory ease. This growth has come despite a 0.32% slump in the price of the company’s shares to HKD 370.20. The shares have remarkably grown by about 95% since October 28, putting them back on the list of the most valuable companies in the world.
The current success of the company is a stark contrast to the situation just a few months ago. In the summer of 2022, the Chinese tech industry faced a major squeeze due to fears of monopolization. This caused the stocks of Tencent to drop to their lowest price point since 2017. In response, the regulators stepped in to ensure that these tech startups would not be monopolizing the market.
Following this, the broader tech industry has seen a remarkable improvement, and Tencent has been one of the biggest beneficiaries of this. Thanks to the easing of pressure from authorities, the company’s stocks have managed to double their price points back in October, pushing them to new heights.
With the current success of Tencent, the company is now firmly back on the list of the world’s most valuable companies. It remains to be seen if the stocks of Tencent can continue on this upward trajectory. However, one thing is for certain, the company has managed to make a remarkable recovery from their financial slump back in the summer of 2022.