Investors concerned that China’s government might split up Tencent into separate companies

Tencent has been facing a lot of restrictions from Chinese authorities during the last few years. In the wake of the ongoing tensions, investors are concerned that the government might want to break up the tech giant.

Several investors addressed their concerns to Tencent executives during the latest earnings call following the company’s report for fiscal year 2021.

Although there weren’t any official comments from the company or the Chinese government about the possible break-up, analysts think that current regulations on the country’s tech companies will continue to cast a shadow over Tencent’s prospects (via South China Morning Post).

China’s antitrust regulator has already fined the company for failing to report 13 M&A deals for a total sum of around $1 million. However, Tencent wasn’t ordered to divest any of the acquired assets.

Despite all the concerns about the Chinese government’s alleged plans to split up the country’s largest tech company, Tencent president Martin Lau Chi-ping called any talks about the break-up “highly speculative,” saying that it is not something they consider at this point.