TCEHY - Why Tencent Huya and Lufax Plunged Today
Shares of Chinese tech and fintech companies Tencent Holdings (OTC: TCEHY) , Huya (NYSE: HUYA) , and Lufax Holding (NYSE: LU) fell 14.5%, 4.6%, and 3.3%, respectively, as of 1:11 p.m. ET.
The across-the-board sell-off in Chinese stocks this morning wasn't hard to figure out. This past weekend, China concluded the Communist Party's 20th National Congress. During the proceedings, President Xi Jinping consolidated power, as he was selected for an unprecedented third term as president, breaking with recent tradition. Furthermore, Xi packed the new seven-person Chinese Politburo with loyalists, cementing his grip on power.
As Xi has instituted unpopular regulatory campaigns against the country's tech sector and implemented harsh lockdowns in a "zero-COVID" policy this year, his consolidation of power was enough to send foreign investors fleeing U.S. and Hong Kong-listed Chinese stocks.
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Why Tencent, Huya, and Lufax Plunged Today