Chinese internet giant Tencent Holdings saw its shares take a tumble on Tuesday, wiping out around US$15 billion in the company’s market value, amid concern of a blow to its video game revenue after regulators blocked the sale of one of its…
Chinese internet giant Tencent Holdings saw its shares take a tumble on Tuesday, wiping out around US$15 billion in the company’s market value, amid concern of a blow to its video game revenue after regulators blocked the sale of one of its blockbuster titles.
Analysts had widely expected Monster Hunter: World to be one of 2018’s biggest hits for Tencent, which licensed the game from Japan’s Capcom to sell on its WeGame platform.
The game, in which players hunt fearsome creatures, disappeared from the platform on Monday, days after its August 8 release.
Tencent said in a statement that regulators had received a large number of complaints about the game, which has sold over eight million copies worldwide.
Shares in Tencent, which is set to report half-year earnings today, closed down 3.4 per cent, against a 0.7 per cent fall in the benchmark Hang Seng share price index.
The company’s share price has dropped more than 14 per cent this year, losing around US$160 billion in market value since peaking in January.
“People are very concerned about Tencent in the short-term,” said Douglas Morton, head of research, Asia, at Northern Trust Capital Markets.
