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Technology Stocks : Tencent
TCEHY 80.62-0.9%Nov 3 3:59 PM EST

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From: Burryville182/22/2023 9:51:48 PM
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Tencent Becomes a "Can't Touch" Stock for some ESG Investors

Dear SI members,

There were recently reports that up to dozens of ESG funds have sold or in the process of selling billions worth of Tencent Holdings due to unabated censorship and regulatory risk issues.

While censorship and surveillance matters continue to be a growing concern for investors, I would like to opine that:

1. These issues are certainly not exclusive to publicly listed Chinese companies.

2. While ESG related concerns may contribute/ stoke a temporary sell-off in the company as investors once again take a "risk off" attitude towards Tencent and/ or Chinese stocks in general, they do not represent "risk" at least from a fundamental viewpoint. If anything, this could potentially serve as yet another opportunity for value oriented investors who are so inclined to buy in the face of negative news.

In short, I do not view Tencent's so called ESG "non-compliance" issues to cause erosion in its underlying lines of businessess and I continue to be bullish on the company.

Sincerely,
Burryville18
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