HK Stock Market Move | Tencent (00700) falls by over 3% again, dropping nearly 13% in the past five trading days. Its market value has fallen below HK$5 trillion.

TENCENT (00700) fell more than 3% again, with a cumulative decline of nearly 13% in the past five trading days. As of the time of publication, it fell by 2.96% to 541.5 Hong Kong dollars, with a turnover of 29.22 billion Hong Kong dollars, and its market value fell below 5 trillion Hong Kong dollars. On the news front, a research report from JPMorgan pointed out that Internet stocks experienced significant volatility recently, as there were reports that Tencent's value-added tax rate may be raised from the current 6% to the 32% level of consumption tax applicable to liquor companies. Although the bank believes that the assertion of mixing up value-added tax and consumption tax and referencing the 32% consumption tax rate seems strange, the initial market reaction shows that after several days of risk aversion sentiment, the market sentiment is quite fragile. Several news media outlets have refuted the related reports before the market close. The bank sees this adjustment as an opportunity to enter Tencent and related Internet stocks. In addition, the recent topic of "WeChat banning Yuanbao sharing links" has sparked discussions. WeChat officially announced yesterday that it was restricting the promotion links of Tencent's own AI application "Yuanbao", and Yuanbao responded by urgently optimizing and adjusting the sharing mechanism, which will be launched as soon as possible to ensure users' experience in grabbing red packets. Subsequently, Tencent's Yuanbao red packets have been changed to the style of "password red packets". At the end of January this year, Yuanbao announced that it would start a Spring Festival event on February 1st, distributing 1 billion in cash red packets. Ma Huateng had high hopes for this year's Spring Festival event, expressing the desire to recreate the prosperity of the WeChat red packets in previous years.