$Tencent Holding Ltd.(TCEHY)$ $Tencent(00700)$ From my perspective, The venture into Chinese equities poses a heightened level of risk for Western investors compared to domestic securities. This heightened risk profile likely plays a pivotal role in Tencent's trading at a discounted valuation, a trend exacerbated by the ongoing exodus of international investors from the stock.
This phenomenon isn't confined to Tencent alone but extends to numerous rapidly growing and highly profitable Chinese equities. Alibaba Holding (BABA) is a great example. Should these risks persist in the future, there's a chance that Tencent investors' overall return prospects could be suppressed.
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