The price of Tencent shares has rebounded after the Chinese government eased uncertainty regarding gaming regulations in China. The Chinese Communist Party, which governs the nation of China, had previously received backlash from foreign investors following the alleged mistreatment of billionaire Jack Ma and his multi-billion dollar company Alibaba in years prior.

Investor confidence has been somewhat inconsistent ever since. Many believe that the Chinese government has too much of a stronghold over companies operating in China. This contributes to Chinese companies being consistently undervalued relative to their western counterparts. Tencent, in particular, is seem by many as being anti-competitive in its operations. Tencent owns a social media application called WeChat. This app has been labelled “the everything app” as it allows users to do everything from single application; from ordering goods and service to making payments.

At the end of 2023, the price of Tencent shares dropped significantly; causing investors to lose millions along with the corresponding decline in Tencent’s valuation. While investor sentiment has since recovered, many investors are still awaiting clear and prolonged period of evidence that Chinese companies are free to operate with minimal government interference, thus maximising shareholder returns into the foreseeable future.