Tencent’s 2022 strategy indicates a downsizing of vast tech empire to ride out China’s regulatory storm, fuel new growth
- Tencent may go for more divestments, while chasing fewer acquisitions this year, analysts say
- After selling its stakes in JD.com and Singapore-based Sea, Tencent may opt to unload its interests in Meituan, Pinduoduo and Kuaishou
During that meeting, Ma said Tencent should do its job without crossing any lines and reiterated the firm’s commitment to serve as an “assistant and connector” for the country and society, according to a report by online Chinese media outlet LatePost.
That showed Tencent’s resolve to “follow the laws, keep a low profile, [and] survive [current] restrictions” amid the regulatory storm that has swept China’s technology sector since late 2020, said Chinese equities analyst Ming Lu from Aequitas Research. He indicated that Tencent will continue to divest shares in selected investee companies and slow down corporate acquisitions, especially on the mainland.
02:26
What makes Tencent such a tech goliath?
Shenzhen-based Tencent, however, remains under pressure to address issues related to data security and video games, as Beijing seeks to curb the influence of Big Tech firms. China’s market watchdog fined Tencent multiple times last year for failing to disclose past mergers and acquisitions deals.
