Chinese stocks are down nearly across the board today following news that multinational tech company Tencent (OTCMKTS:TCEHY) will shut down its video game streaming platform. Chinese regulators have been prying into Tencent’s operations for months as part of a greater tech sector crackdown. Additionally, today’s news may be a consequence of the denied merger between Tencent, Huya (NYSE:HUYA) and DouYu (NASDAQ:DOYU) that regulators rejected last year.
So, what’s going on with Chinese stocks today?
Tencent announced that on June 7, its Penguin Esports streaming service will be removed from app stores. It seems Tencent can’t catch a break as today’s news follows a miserable Q4 earnings call. Indeed, the company reported its slowest quarterly revenue growth in its history as a public company.
Today’s development comes as China attempts to cut down video game use in children under 18. This has translated into limited online time for children and blocking the release of controversial titles.
A number of major Chinese companies seem to be falling today on Tencent’s latest announcement. But that’s not the only news out of China lately.
Chinese Stocks Sink on Mounting Regulatory Concerns
In addition to Tencent’s streaming platform cancellation, JD.com’s (NASDAQ:JD) founder and Chief Executive, Richard Liu, has stepped down from the company. Indeed, China’s second-largest e-commerce company has experienced its own share of regulatory woes lately. Liu joins an ever-growing list of executives leaving their companies amid sweeping tech sector crackdowns.
Liu previously hinted at leaving his role in the company. However, his departure has nonetheless been a sign of changing tides for many investors. JD, alongside the greater Chinese tech market, has experienced something of a selloff since its highs last year. Largely due to the country’s own interference, JD has lost nearly 45% of its market capitalization since it peaked at $92 billion in 2021.
Tencent, Alibaba (NYSE:BABA) and JD.com stocks are each down between 1% and 3% so far today. The big loser today, however, is undeniably Pinduoduo (NASDAQ:PDD), down nearly 8% at the time of writing.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.