Tencent share price dropped 7.8% on 26 Jul 2021. And experienced another 9% decline on the following day.
Since its high of HK$757 on 11 Feb 2021, it has tumbled 43% to HK$446 by 28 Jul 2021 (at point of publishing).
Although it looks like the stock market has just crashed but no. Tencent’s decline was pertaining mainly to the Chinese stocks and especially big powerful tech companies that have been receiving the authorities’ wrath.
Those who invested in Tencent are wondering when this carnage will be over. Some may even be thinking about averaging down their position but are wondering if it is a good idea as they watch the stock slide.
Those who do not have the stock may want to take the opportunity to buy. Again, should you consider buying, given that the Chinese government may do even more damage to the company? And how should you value Tencent since its long term value has been lowered by the intervention?...