An investigation on behalf of investors of Tencent Holdings Limited (OTC: TCEHY) shares over potential securities laws violations by Tencent Holdings Limited and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Tencent Holdings Limited (OTC: TCEHY) concerning whether a series of statements by Tencent Holdings Limited regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
China based Tencent Holdings Limited, an investment holding company, provides value-added services (VAS) and Internet advertising services in Mainland China, the United States, Europe, and internationally. Tencent Holdings Limited reported that its annual Total Revenue rose from over 312.69 billion CNY in 2018 to over 377.28 billion CNY in 2019, and that its Net Income increased from over 78.71 billion CNY in 2018 to 93.31 million CNY in 2019.
On March 12, 2021, Bloomberg published an article entitled Tencent Faces Broad China Clampdown on Fintech, Deals, reporting that Chinas top financial regulators see Tencent as the next target for increased supervision after the clamp down on Ant Group Co. As a result, the Company would probably be required to establish a financial holding company to include its banking, insurance, and payments services.
Shares of Tencent Holdings Limited (OTC: TCEHY) declined from $92.75 per share on March 3, 2021 to $80.60 per share on March 15, 2021.