Tencent and other Chinese tech firms are reporting decent results

THE LAST three months have been hard on China’s most valuable public technology companies. Or, at least, on their share prices. In May Alibaba and Tencent lost more than a tenth of their value in the week after President Donald Trump restricted the export of American technology to Huawei, a privately held Chinese telecoms giant. Investors feared that knock-on effects from the ban might hurt other Chinese tech businesses by, for instance, making it hard for them to source cutting-edge components and software from America.

You would not have guessed, looking at the latest batch of quarterly results. Take Tencent, which owns WeChat, a ubiquitous all-in app, makes mobile games and much cyberstuff besides. On August 14th it reported that a new hit game—which lured users of its most popular title, banned by Chinese censors earlier in the year—propelled its profits to 21.4bn yuan ($3.4bn), from 17.9bn yuan in the same period last year. Revenues rose by 21%, to 88.8bn yuan. Or JD.com, an e-merchant, whose healthy revenues, posted earlier in the week, revived a sagging share price. Analysts expect Alibaba, China’s e-commerce titan, which was due to publish its second-quarter results on August 15th after The Economist went to press, to notch up sales of 111bn yuan and rake in a net profit of 10.3bn yuan, an increase of...

via Business Feeds

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