Shorting Tencent?

mchongmy
2022-06-28

Yesterday’s announcement that Dutch technology investment company Prosus, and Naspers, which holds 28.78 per cent stake in $TENCENT(00700)$ , would gradually sell their shares, led to a fall of 2.5% to HK$374.60. The stock last traded down 1.3 per cent, the third biggest percentage decliner in the Hang Seng Tech Index. 

The decision comes after Prosus NV reported a 20% fall in annual core headline earnings and announced a major share repurchasing programme. To fund the programme Prosus will gradually sell down its massive 28.9 per cent stake in Chinese software giant Tencent, owner of WeChat, worth more than $100 billion at current prices.

Despite the fall in shares, Tencent could still be a worth investment to look into. Tencent launched an all-in-one cloud product for domestic and overseas automakers in China, “Tencent Intelligent Automobile Cloud”  with features ranging from storing data in a way optimized for training autonomous driving systems to giving drivers access to Tencent’s social media and map apps. Tencent hopes to be foreign automakers’ go-to company for tech in China’s electric car market in the world’s largest auto market, in which electric car sales have surged. With Tencent’s new product they are already working with 40 auto brands, including BMW and SAIC.

With Tencent’s dominance in some of the top entertainment and social media apps, the user interface could be a major selling point for China’s drivers.

Will you be shorting Tencent ? Let me know what you think!

if you wish to leverage on this, consider usign DLCs:

$Tencent 5xLongSG230330(DGGW.SI)$ 

$Tencent 5xShortSG230202(DTCW.SI)$ 


💰 Stocks to watch today?(05 Nov)
1. What news/movements are worth noting in the market today? Any stocks to watch? 2. What trading opportunities are there? Do you have any plans? 🎁 Make a post here, everyone stands a chance to win Tiger coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Andrewcms
    2022-06-28
    Andrewcms
    Mid to long term
  • DarrenTay
    2022-06-30
    DarrenTay
    China stocks will eventually fly
  • BurnellStella
    2022-06-29
    BurnellStella
    Thanks for sharing, your post is great.
  • patricklowck
    2022-06-29
    patricklowck
    buy the dip
  • kyz
    2022-06-30
    kyz
    ok
  • Snakewood
    2022-06-30
    Snakewood
    🤔🤔👌🙏🤞🤞
Leave a comment