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> It’s not like the money just disappears. Tencent has lost a lot of value in the past few months and has had a terrible year overall. The value has disappear
by akira2501 3y ago
> It’s not like the money just disappears.
Tencent has lost a lot of value in the past few months and has had a terrible year overall. The value has disappeared.
> I think it’s a concept invented to facilitate wealth transfers.
Well, if you transfer a bunch of wealth upwards, it's going to have negative consequences that travel downwards. Those who receive them may describe the economy as "bad." Which not only describes a current state, but probably mostly encodes their lack of hope for any type of future mobility that may change their circumstances.
- gamblor956 3y agoTencent lost a lot of value because China decided to crack down on a number of Asian business video game business models last year, and this directly affected a large portion of Tencent's portfolio. However, according to their Q3 filings (Q4 has not been filed yet), their video game revenue is actually up and they specifically cite the performance of Valorant. So the issue for Tencent wasn't Riot Games, it was its Chinese developers.
- akira2501 3y agoMore recent news shows that the "government official" in charge of introducing this new rule was fired and the rulemaking abandoned. Their total value loss has occurred solidly throughout 2023. No part of the year was particularly good for them, and the regulator news doesn't seem to have had any unique impact, at least looking at their OTC chart.
- gamblor956 3y agoThe announcement of the rule caused an 12.7% drop in stock price from which Tencent has still not recovered.
- meheleventyone 3y agoThey fired the person that announced the rule not any of the people that actually came up with it! AFAIK whilst there’s going to be changes the rules will be along similar lines.