Tencent Selloff Shows Deep Scar Tissue in Chinese Markets

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Tencent Selloff Shows Deep Scar Tissue in Chinese Markets
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Heard on the Street: The Tencent selloff shows investors’ trauma over China’s tutoring-stock crackdown

that could be long in healing.

Putting the fear of God into investors may help Beijing direct capital more easily into areas it prefers, but also risks magnifying volatility and complicating corporate-investment plans, as every regulatory blip is seen as a possible death sentence.of game stocks Tuesday after a Chinese state newspaper called online games “opium for the mind.” Chinese game giant Tencent dropped as much as 11% Tuesday, while rival NetEase lost 16% at one point.

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