Tencent Holdings Loses its Position in Global Stock Wipeout

Tencent Holdings is a massive Chinese company that most well-versed gamers know about. It owns many highly reputable video game companies like Epic Games and Riot Games. Furthermore, it owns some stocks of other studios like Ubisoft and Miniclip.

So, Tencent has a pretty strong grip on the entire video game ecosystem. It is known to take a lot of the right steps and has not seen a lot of criticism from players in recent history. It has set a pretty high bar for other companies regarding the quality of video games it publishes.

Some of Tencent Games’ most notable titles inlcude PUBG Mobile, which is still one of the most popular mobile games to date. Some other titles that you may not know are under Tencent Holdings contain League of Legends and  Path of Exile.

Stock Wipeout

We at toptierlist were able to find a neat statistic provided by google that shows the rapid demise of Tencent Holdings. It is key to note that Tencent Holdings doesn’t just deal in gaming products. However, most of its demise is directly dependent on this particular element.

Tencent Stock Graph by Google
Stock Graph

As you can see from the graph, it does not look pretty for Tencent at all. Tencent was on the verge of becoming Asia’s second trillion-dollar company in early 2021. But due to some unfortunate events, it has quickly fallen from its throne.

The major reason it cracked down so poorly is because of the year-long crackdown that’s been happening in the region. It is not impossible, but it’s going to be hard for Tencent to recover from this unfortunate event.

This does not look especially well because Beijing’s current overhaul of gaming companies in the region paired with the economic crisis going on in the world. Tencent is surely in quite a pickle because its path back up is narrow and brittle.

The Gist of it All

  • Tencent loses its position at the top of the stock charts after Beijing’s year-long crackdown.
  • The pathway back for Tencent looks hard because of the major overhaul of gaming companies in the region.

Gaming Crackdown in China

After talking about Tencent going down, let’s talk a bit more about how that happened and what hurdles it faces on its way back. It is pretty well-known how China has cracked down on gaming among its people.

This is quite possibly the most troubling factor for Tencent because it does not look like this is going away anytime soon. With minors getting even more limited screen time and a massive restriction on approvals in the gaming sector, there is nothing to help Tencent here.

Many investors have already pulled back from this company, and even more are looking to do so soon. However, despite all of this, Tencent seems to have not let this affect the quality control too much. Let’s see if that changes in the months that follow.