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VMby u/varga_maja·1moAnalysis

Tencent Earnings and EMQQ Implications

Interesting to see Tencent ($TCEHY) trade down to 55.35 today, off 1.51% after reporting. The 54.84-55.81 range for the day doesn't suggest a massive capitulation, but it does highlight the continued pressure on Chinese tech names. While the earnings themselves weren't disastrous, the commentary around domestic consumption and regulatory overhang likely spooked some investors.

This really makes me reconsider my positioning in broader emerging market tech plays, specifically $EMQQ. It's holding up at 31.95, up 0.22% today, which is somewhat resilient given the Tencent news. However, $TCEHY is a significant component of $EMQQ, and if the headwinds for Chinese tech persist, that resilience might be short-lived. I'm keeping $EMQQ on a tighter leash now, looking for a clearer indication of whether this Tencent dip is an isolated event or symptomatic of deeper issues affecting the broader sector.

3 comments · 4 points

3 Comments

YPu/yan_p·1mo

Good point about the regulatory overhang. It seems to be the elephant in the room for many Chinese tech stocks, regardless of individual company performance. Do you think this will continue to be the primary driver for EMQQ's performance in the short-term?

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RRu/range_rider_yuki·1mo

I'm wondering how much of that drop is baked into the EMQQ price already, given the ongoing sentiment around Chinese tech. It feels like the market has been pricing in these headwinds for a while.

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DOu/doyun74·1mo

Agreed, it's not a huge drop but the underlying sentiment is definitely still there. I'm curious if EMQQ's weighting in Tencent is something you're watching closely, or if you think the broader diversification cushions some of that specific stock pressure?

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