While China investors have to contend with geopolitical tensions, the regulatory crackdown of 2021 and COVID lockdowns of 2022 have caused many high-quality Chinese stocks to trade at very, very low valuations. And they are especially cheap compared with U.S. tech stocks after the latter's big run this year.Tencent (TCEHY 3.45%) could be the best company in all of China, but it also has fallen mightily from its highs as the Chinese government cracked down on big tech and gaming companies.Last Friday, the st ...

Shares of Tencent (TCEHY -9.69%) were down 10.3% as of 12 p.m. ET Friday after Chinese authorities proposed new rules aimed at curbing excessive online gameplay and spending.China's new round of online gaming rulesIn a draft document released this morning, regulators from China's National Press and Publication Administration say they're seeking public comment on several new proposed restrictions for online gaming companies in the country. Among those restrictions are a ban on daily login rewards, lower rech ...

Lintao Zhang Tencent (OTCPK:TCEHY) was falling double-digits in Friday trading after the Chinese government announced new rules cracking down on online gaming. In this report, I analyze the potential financial fallout from such regulation, as well as any potential impact on the valuation. TCEHY remains a dominant Chinese tech titan with positive cash flow generation and a solid balance sheet. Prior to this online gaming announcement, TCEHY was positioned for operating leverage, as management has committ ...

On December 22, shares of Tencent (HKEX: 700) and NetEase (HKEX: 9999) experienced a sharp decline following the release of draft guidelines by the Beijing government designed to restrain incentives contributing to excessive gaming and spending.During mid-morning Friday trading, China’s National Press and Publication Administration unveiled the latest draft guidelines, causing a drop in the Hong Kong-listed shares of both Chinese companies, as reported by CNBC on December 22.The agency additionally stated t ...