Saturday , August 18 2018

Tencent shares lose $17bn a day before earnings

Bloomberg

Tencent Holdings Ltd. is back below HK$400 as investors await its quarterly earnings.
The shares slumped 3.4 percent on Tuesday for the biggest drag on the Hang Seng Index, taking its losses since a record in January to $95 billion.
Whether it’s just a case of profit taking after a five-day rally, whispers about quarterly numbers, or just index rebalancing ahead of China’s MSCI Inc. inclusion at the end of the month, the drop may reinforce concerns about the company’s earnings.
Analysts predict the Chinese Internet giant will probably report its lowest profitability since at least 2003 after the close of trading on Wednesday.
Adding to the jitters was a 14 percent after-hours slump in Vipshop Holdings Ltd., a New York-listed Chinese retailer which counts Tencent as one of its investors.
The options market is implying a move of 3 percent either way after the results day, which would be the biggest earnings reaction in more than two years.

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