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On November 10, the State Administration for Market Regulation publicly solicited opinions on the "Guidelines for Anti-Monopoly in the Field of Platform Economy (Draft for Comment)". Tencent Holdings plummeted 7.39% on the 11th, but Southbound Funds bucked the trend and made a large-scale bargain hunting. Statistics show that in the three trading days from November 11th to November 13th, Southbound funds purchased a total of HK$12 billion from Tencent Holdings.

November 11 this year also coincides with Tencent’s 22nd birthday. The "Antitrust Guidelines" put Tencent and other Internet giants on the cusp, and also attracted capital market leaders to cheer them up. Today's Capital Xu Xin released a WeChat Moments statement on the 11th: In the past 16 years, as soon as we have money, we have increased Tencent, and 16 years of persistence have earned more than 500 times the return.

HK$12 billion in southbound funds are hunting down Tencent Holdings

On November 10, the State Administration for Market Regulation released the "Guidelines for Antitrust in the Field of Platform Economy (Draft for Comment)" solicit opinions. Tencent Holdings gapped and opened lower on the 11th. It plunged 7.39% that day. This single-day decline was the largest since October 3, 2011. On October 3, 2011, due to the escalation of the Tencent 360 dispute, Tencent plunged 9.26% that day.

The sharp drop of Tencent Holdings triggered large-scale purchases of Southbound funds. Statistics show that Southbound funds bought 6.755 billion Hong Kong dollars on the 11th; on the 12th they bought 2.76 billion Hong Kong dollars, on the 13th they bought 1.78 billion Hong Kong dollars, and on the 16th they bought 672 million Hong Kong dollars. In the past 4 trading days, Southbound funds bought a total of HK$12 billion.

With the influx of bargain-hunting funds, Tencent Holdings has recovered the losses it lost on November 11 in the past two trading days. On the 12th, Tencent Holdings surged 4.72%; on the 13th, Tencent Holdings surged 4.33%; on the 16th, Tencent Holdings fell slightly by 0.83% to close at HK$597.

"Queen of Venture Capital" Xu Xinda made more than 500 times profit

On November 11, 22 was established in Tencent On the anniversary of the anniversary, Xu Xin, the founder of Capital Today, posted on WeChat Moments that he rushed in and bought Tencent at five yuan (one split for five, equivalent to 1.1 Hong Kong dollars per share) at Tencent Holdings. 16 years have passed. , I didn’t sell a single share, and increased the position as soon as I had money, realizing more than 500 times of income.

Xu Xin sighed, "More than 500 times the return is gratifying, which makes me believe in the power of the brand and the power of compound growth." Xu Xin said that the first time I knew Tencent was in June 2004 At the Tencent IPO luncheon, I still remember the first impression at the time: this company has many users and they don’t pay much. Only a few users pay a few dollars a year. President Martin speaks quite honestly. shy. It didn’t take long for the text message to confirm that Tencent’s stock price had fallen. At a price of HKD5 5 (one split five, equal to HKD1.1 per share), I rushed in to buy Tencent’s stock. 16 years have passed and I have no share. Once I have sold it, I will increase the position as soon as I have money, and the return of more than 500 times is gratifying. This makes me believe in the power of the brand and the power of compound growth.

Xu Xin also said that 16 years have passed, and we have witnessed Tencent expand its categories and make good products to make users happy, from instant messaging to Tencent games, to Tencent video, QQ music, to great Wechat and Wechat Pay are worried that short videos will take the limelight. Another small program company Wechat has launched a new era of private domain traffic. In 16 years, Tencent has also experienced several challenges and troughs. When in doubt, I took out the speech of Brother Xiao Ma and the video of Zhang Xiaolong. After reading it, I felt at ease. They are like the catchers of the wheat field, guarding users with their heart. Today is Tencent’s 22nd birthday. As a user, As a shareholder, I am loyal to Tencent! Thanks to the Tencent team! Happy Birthday!

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Xu Xin is the "first sister" of China Internet Venture Capital Fund. She invested in JD.com with a return rate of more than 160 times. She invested in Vipshop and earned 50 times the return, Yifeng Pharmacy 12 times, and NetEase 8. Bei, Meituan, Zhihu, Three Squirrels, Liangpin Shop and other companies have Xu Xin behind them.

Xu Xin once said: “Great companies should never quit. I have tasted a lot of sweetness, which is the power of compound interest. Great companies should be held for a long time. I have made a lot of money on Tencent. There is no need to do anything. There are not many great companies. You can hold these for a long time. Just hold them."

The influence of platform economy on antitrust is geometric

Tencent once again released a beautiful three quarterly report on the 12th. Tencent’s third-quarter revenue increased by 29% year-on-year to 125.4 billion yuan; net profit increased by 32% year-on-year to 32.3 billion yuan, far exceeding market expectations; the game business continued to maintain a strong growth momentum, with a year-on-year growth of 45%.

Galaxy International stated that the company’s net profit forecasts for fiscal year 2020, fiscal year 2021, and fiscal year 2022 were revised upwards by 3.6%, 6.6%, and 8.7%, respectively. This was mainly due to higher Online game revenue growth forecast and online advertising revenue growth forecast. "Tencent has outperformed the market year-to-date. Anti-monopoly law concerns may keep its stock price under pressure, but this will provide a good opportunity to re-enter the market."

Citic Securities said , The "Anti-Monopoly Guidelines" may have an impact on WeChat business, but it is expected to have limited impact on games, advertising, and finance.

CITIC Securities believes that the impact of the "Anti-Monopoly Guidelines" on Tencent is mainly focused on whether there is a phenomenon of refusal to trade. According to the criteria for the determination of refusal of transactions in the "Anti-Monopoly Guidelines" regulations (the establishment of obstacles in platform rules, algorithms, technology, traffic distribution, etc., making it difficult for counterparties to conduct transactions), WeChat previously banned competing platforms such as Taobao and Douyin. The act of sharing the link may be deemed as a refusal by the regulatory authorities.

CITIC Securities believes that in Tencent’s other businesses, games as a product unit rather than a platform are not applicable to the "Antitrust Guidelines"; Tencent’s advertising business will reach 18.55 billion revenue in 2020Q2 According to iResearch’s data in 2020Q2, the domestic online advertising market has reached 167.89 billion yuan. Tencent’s advertising business has not reached market dominance. The Internet advertising sector still maintains a market-based pricing system. In the financial and corporate services business, Tencent is currently paying, Neither credit nor cloud businesses have achieved monopoly or dominance of the market.

Everbright Securities stated that the actual impact of the “Anti-Monopoly Guidelines" on Tencent remains to be seen. Tencent has experienced anti-monopoly litigation from 2010 to 2014. The Supreme Court finally determined that Tencent does not constitute a monopoly infringement. Overseas technology giants Google and Microsoft have encountered long-term antitrust investigations and lawsuits. The relevant antitrust measures have given space for innovation to small and medium-sized companies in the industry. The stock prices of technology giants have suffered short-term shocks but no long-term trends influences.

This article is from Brokerage China

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Tags: Mobile Internet Tencent Venture Capital

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