TIM CULPAN: China’s booming Tencent woos regulators amid crackdown
Tencent is betting that the financial costs of obedience will allow it to reap the ultimate dividend of remaining in Beijing’s good graces
Tencent Holdings’ $223bn (R3.34-trillion) portfolio of shares helped it post record earnings in the June quarter. But with regulators on the warpath, the Chinese games and social media company will be looking to profit from a different type of investment: contrition.
Though most famous for its WeChat messenger and booming online games businesses, almost half its profit in the past quarter came from upward revaluations of its vast collection of stakes in other companies. It needed the boost...