Tencent Holdings Ltd (0700)

[Choon]

Surely a good sign of undervalued country specific market! Haha.

It is getting easier to shoot in the barrel!

I find below from Duan Yongping take on gaming draft rules to be interesting (translated using WeTranslate):
The nature of games is that people need somewhere to spend their time, and online games are the cheapest place to have fun and spend time. Nothing can stop people from playing games, otherwise what you let everyone do? But the quality of the games are many, playing mahjong is one of them. Net net, standardization to prevent certain people eager for quick success and instant benefit & profiteering is pretty good actually. In the long run, this kind of regulation is definitely good for good quality gaming companies.

Direct link in Chinese:
https://xueqiu.com/1247347556/272166720

Ksir, 

大道无形我有型 is the account of Duan Yongping?

Yup, that is right.
His comments are usually direct, blunt & almost always looking further than others.

The regulations (if ever being implemented as is), will likely kill off the existing small & medium gaming companies (the agency heads going to roll before that ever happen).
Releasing such rules during such depressed time and on friday (why not hold a few more hours and waited for the market to close, for market to digest over the weekend??), it is either "someone" trying to profit from the market panic or just the pure show of stupidity. I bet could be a combination of both.

But anyway, the saga did throw me opportunities to pick up more tencent below 300 and netease at 110. For that, kudos man!

Imho, the rules need to kill off half of the gaming companies before it brings down NetEase and almost all gaming companies before Tencent!

Thank you. I find his comments frank and sharp too. Will keep an eye on his postings.

In your investment thesis for Tencent, 

- how much of it is based on a 'value-play'  / that the price now is not commensurate to its current strength and quality; and

- how much of it is based on a 'growth-story' / that earnings could be substantially higher 5, 10, 15 years from now?

I ask because I struggle to see what future growth there can be given its dominance.