Tencent Holding Ltd. TCEHY shares traded higher Tuesday amid overall strength in Chinese equities possibly driven by the easing of U.S. banking concerns. The stock also appears to have moved in sympathy with Alibaba BABA and reports of China vowing to keep opening its markets to foreign capital.
The Details: According to a Reuters report, China vowed to "ease a sweeping regulatory crackdown and support its private enterprises," a move that was lauded by investors after two years of crackdowns on private enterprises that created a hostile environment for foreign investors. This move could benefit Tencent, as a relaxed regulatory environment could lead to an increased bullish outlook on Chinese equities for foreign investors.
Additionally, Alibaba announced intentions to undergo a restructuring. The company will reorganize its business into six separate, independently-run entities with the intent to explore fundraisings or listings for most of them. The restructuring aims to increase the flexibility and adaptability of the entities, allowing the company to streamline management and shorten decision-making.
Check This Out: BOOM! Alibaba Gaps Up Above Key Indicator Following Major Restructuring News
Tencent is arguably the most influential internet firm in China as one can hardly go a day without using its products. The company owns one of the world's top-grossing mobile games, "Honor of Kings," and one of China's largest social media apps, "WeChat."
According to data from Benzinga Pro, Tencent shares closed Tuesday up 8.03%, at $49.90. The stock has a 52-week high of $52.88 and a 52-week low of $24.75.
Image courtesy of Tencent Holding.
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