In today's video, I look at why Chinese stocks are down big. The main culprit for the sell-off today was Prosus (PROSY 0.30%), with its intention of selling some of its position of Tencent (TCEHY 2.36%). Prosus is currently the biggest shareholder of Tencent, and the sell-off triggered a red flag for investors. Since there have been no fundamental changes to Chinese stocks, this event might be giving investors a chance to enter the Chinese market at a discount.
3 Chinese Stocks Down Big
- Tencent is a tech giant in China. It has holdings in numerous companies hitting different markets, including social, gaming, fintech, and online advertising. Tencent's stock price is down 7.5% for the day and over 20% from its six-month all-time high.
- Huya (HUYA 0.59%) is one of the top e-sports live-streaming platforms in China. Huya's stock price is down 4.46% for the day and over 40% from its six-month all-time high.
- DouYu (DOYU -10.24%) is a competitor of Huya's, and there are talks about a merger between the two, but it needs to be approved by regulators. Doyu's stock price was down 2.35% for the day and over 40% from its six-month all-time high.
Click the video below for my full thoughts.
*Stock Prices used were the Midday prices of April 7, 2021. The video was published on April 8, 2021.