Chinese tech giant, Tencent Holdings Limited has dropped out of the list including the top 10 largest firms in the world by market value, as Beijing's regulatory crackdown continues to wreak havoc on the stock market. Now, there is no company from the People's Republic of China on the list.
Tencent's Hong Kong-listed shares plummeted as much as 1.9 per cent on 16 September before recovering some of its losses, with a market valuation of $552 billion as of 11.55 am local time.
According to Bloomberg, the valuation of the Chinese company put it behind the American chipmaker Nvidia Corp, which has a market capitalisation of $559 billion. However, the list now includes the topper, Apple with a $2.46 trillion valuation, followed by Microsoft ($2.29 trillion), Alphabet ($1.93 trillion), Saudi Arabian Oil Company ($1.87 trillion), Amazon.com ($1.76 trillion), Facebook ($1.05 trillion), Tesla ($757 billion), Berkshire Hathaway ($630 billion) and Taiwan Semiconductor Manufacturing ($563 billion).
This is probably the first time since 2017 that a Chinese corporation has not been among the world's top 10 list.
Tencent's demotion comes after Alibaba Group Holding Limited was demoted earlier this year, as China's internet behemoths face stiffer regulations on everything from monopolistic behaviour to data security and children's gaming hours. Since reaching a record high in January, Tencent's stock has lost roughly $390 billion in market value. The Hang Seng Index has been the worst performer in the world this month as a result of the crackdown, with Alibaba and Tencent being the largest drags.
Despite Tencent's efforts to comply with evolving regulatory standards, the Chinese government's crackdown on the country's domestic technology industry continues.
Recent reports claimed that Beijing filed a civil suit against Tencent over the claims that its messaging app WeChat’s Youth Mode does not comply with laws protecting minors.
As the gaming industry became the latest target of the Chinese Communist Party (CCP) and has been chastised by state media for delivering the digital equivalent of drugs to the country's younger population, shares of companies like Tencent — which owns Riot Games, makers of the popular League of Legends title — as well as NetEase dropped.
State-run news agency Xinhua reported in early September that Chinese authorities had summoned companies, including Tencent to discuss limitations on minors streaming and playing video games. During that meeting, companies were asked "to break from the solitary focus of pursuing profit or attracting players and fans".
It was also reported that Tencent and NetEase have lost more than $60 billion in value as investor concerns rise over fears that the Chinese officials are about to tighten their grip on the world's largest gaming business drastically. Since August, when Chinese state media denounced games as "spiritual opium". pushing Tencent to consider a ban for children, investors have been increasingly concerned about the gaming industry.
Beijing's campaign to rein in the country's massive Internet industry is approaching its 11th month, a roller-coaster ride that began when regulators thwarted Jack Ma's Ant Group's record IPO before launching investigations into Alibaba Group Holding Limited, Tencent-backed food delivery giant Meituan and Didi Global.
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