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Tencent Holdings (OTC:TCEHY) 株価情報, 空売り情報

Tencent Holdings

TENCENT HOLDINGS ADR

Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app, which has become deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading tech companies, including PDD, Kuaishou, and Epic Games.

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Global

Economics

General

BABA

TCEHY

VWAGY

YUMC

（３日）フォルクスワーゲンAG（OTC：VWAGY）メルセデス・ベンツ（Mercedes-Benz） L&#39;Oréal（ロレアル）をはじめとする数多くの大手多国籍企業が、中国における需要の減少を懸念している。

中国指数消費者信頼度の低下　大手外資企業が苦戦

TENCENT HLDGS UNSP/ADR by Tencent Holding Ltd.

Tencent Holdings Ltd

TTWO

Tencent, Guillemot Family Are Said To Weigh Buyout Of Ubisoft

Amid China&#8217;s recent economic stimulus efforts, Citi has identified three U.S.-listed Chinese stocks as potential winners. The measures, introduced last month, aim to rejuvenate the economy and enhance market and consumer confidence.
What Happened: Citi has pinpointed three Chinese stocks listed in the U.S. as potential beneficiaries of China&#8217;s recent economic stimulus measures, CNBC <a href="https://www.cnbc.com/2024/10/03/citi-names-3-us-traded-stocks-set-to-benefit-chinas-stimulus-program.html">reported</a> on Thursday. Last month, China rolled out several policies aimed at revitalizing its economy and boosting market and consumer confidence.
These efforts have already led to significant gains in Chinese internet stocks, with the KraneShares China Internet ETF rising by 45%. Despite these gains, Citi analysts, led by Alicia Yap, believe the market has not fully accounted for the potential improvements in macroeconomic conditions and earnings growth.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41134194/odds-of-tim-walz-winning-the-vp-debate-drop-on-polymarket-as-bettors-favor-jd-vance-harris?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Odds Of Tim Walz Winning The VP Debate Drop On Polymarket As Bettors Favor JD Vance — Harris Maintains Lead Over Trump</a>
The Wall Street bank highlighted Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), Trip.com Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>) and Meituan (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MPNGY#OTC">MPNGY</a>) as top picks to benefit from the stimulus. Tencent, with its diverse business portfolio, stands to gain from increased consumer spending and online activity. Trip.com Group is expected to benefit from a resurgence in China&#8217;s travel industry, while Meituan could see growth in consumer spending on food delivery and local services.
Why It Matters: The recent stimulus measures in China have sparked optimism in the markets. Chinese stocks experienced a rebound following the <a href="https://www.benzinga.com/news/24/09/41097864/china-stocks-jump-as-stimulus-optimism-mounts-whats-going-on">announcement of policies</a> allowing homeowners to refinance mortgages. This move is part of a broader strategy to support the struggling economy.
Despite the positive short-term impact, there are concerns about the long-term effectiveness of these measures. Experts hold skepticism about the ability of these stimulus programs to address <a href="https://www.benzinga.com/opinion/24/10/41148148/why-chasing-the-china-rally-could-cost-you-everything">China&#8217;s structural economic issues</a>, particularly in the real estate sector. Nevertheless, the immediate liquidity injections have provided a boost to the markets, with the CSI 300 index rallying by nearly 16% last week.
Read Next:
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<li><a href="https://www.benzinga.com/news/24/09/40972893/trumps-mars-landing-promise-gets-slammed-by-peter-schiff-even-as-elon-musk-says-spacex-plans-5-launc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s Mars Landing Promise Gets Slammed By Peter Schiff Even As Elon Musk Says SpaceX Plans 5 Launches</a></li>
</ul>
Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Analyst Color

Equities

Markets

MPNGY

TCOM

These US-Listed Chinese Stocks Set To Surge Amid Beijing's New Stimulus Plan: Citi

Epic Games CEO Tim Sweeney declared the company "financially sound" during a presentation at <a href="https://www.benzinga.com/general/gaming">Unreal Fest 2024. </a>
This statement comes after a tumultuous period marked by significant layoffs and strategic divestitures.
<h3 class="wp-block-heading">The Layoffs And Strategic Shifts</h3>
In September 2023, Tencent ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) backed Epic Games made headlines when it announced a massive reduction in its workforce, laying off approximately 830 employees—about 16% of its total staff.
See Also: <a href="https://www.benzinga.com/general/gaming/24/10/41126126/fortnite-just-made-parenting-easier-how-to-control-your-kids-playtime-with-latest-update">Fortnite Just Made Parenting Easier: How To Control Your Kid&#8217;s Playtime With Latest Update</a>
Alongside the layoffs, Epic divested its music service platform Bandcamp and spun off the majority of SuperAwesome, a child-safe technology company. These moves resulted in the exit of around 250 additional staff members.
At the time of the layoffs, Sweeney said that Epic had been "spending way more money than we earn," pointing out the need for a "major structural change to our economics." 
Furthermore, he noted that the explosive growth of Fortnite — which initially funded the company's expansion — had transitioned to a model with lower profit margins due to revenue-sharing with creators.
<h3 class="wp-block-heading">A Year Of Rebuilding And Record Success</h3>
Fast-forward to Unreal Fest 2024, and Sweeney presented a much more optimistic view of Epic's state.
&#8220;I&#8217;m happy to tell you now that the company is financially sound, and that Fortnite and the Epic Games Store have hit new records in concurrency and success,&#8221; he said, <a href="https://www.gamesindustry.biz/epic-games-ceo-says-company-is-now-financially-sound">according</a> to GamesIndustry.biz-
And added: "We spent the last year rebuilding and really executing solidly on all fronts." 
Fortnite reached 110 million monthly active users (MAUs) during the recent holiday season. This milestone shows the game&#8217;s lasting appeal even seven years post-launch, marking a significant increase from the 78.3 million MAUs reported in August 2018. 
While Epic Games remains in a competitive struggle with Steam for dominance in the PC gaming market, the Epic Games Store reported 70 million MAUs in the last month. However, the store continues to operate at a loss, facing challenges in converting its growing user base into profitability.
<h3 class="wp-block-heading">Legal Challenges And Financial Implications</h3>
Meanwhile, Epic Games is still navigating a complex legal landscape. Sweeney has openly stated that the company&#8217;s ongoing litigation against <a href="https://www.benzinga.com/general/gaming/24/08/40423388/epic-games-mobile-store-goes-live-in-europe-ceo-says-apple-had-to-be-challenged">tech giants like Apple </a>and Google has cost Epic around $1 billion. 
The legal battles primarily stem from Epic&#8217;s attempt to create a competing app store for mobile devices, which has led to a series of costly disputes.
In a fresh move, Epic has initiated another lawsuit against Samsung and Google regarding a feature known as Auto Blocker, which complicates the installation of Epic Games on mobile devices. 
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/gaming/24/09/41098067/epic-games-files-new-antitrust-lawsuit-against-google-samsung-over-app-store-restrictions">Epic Games Files New Antitrust Lawsuit Against Google, Samsung Over App Store Restrictions</a></li>
</ul>
Image credits: Shutterstock.

Gaming

Epic Games Is Now 'Financially Sound,' Says CEO Tim Sweeney After Major Layoffs

Shaquille O'Neal could be the latest legend to join Fortnite, putting the NBA star on the same level of <a href="https://www.benzinga.com/top-stories/24/08/40322467/disney-characters-join-fortnite-in-latest-collaboration-with-epic-games">movie characters and superheroes.</a>
What Happened: Internet leaks predict that O'Neal (aka Shaq) could get the Fortnite Icon series treatment in the<a href="https://www.benzinga.com/topic/fortnite"> popular online video game </a>with the potential of skins and accessories coming Saturday, Oct. 4.
Leakers, like <a href="https://x.com/ShiinaBR/status/1841124523166290311">ShiinaBR</a>, have pointed to Fortnite data files showing upcoming skins and themes based on O'Neal and the movie characters Billy from the Saw franchise and Leatherface from the Texas Chainsaw Massacre franchise.
O&#8217;Neal, one of the best-known National Basketball Association players of all time, earned a long list of nicknames over the years. In addition to &#8220;Shaq,&#8221; there could be multiple variations of O'Neal that appear in the game, including Diesel, Shaq Fu, Superman and DJ Diesel, his musician persona.
Performing as DJ Diesel, O'Neal may have teased the collaboration with Fortnite, sharing a video at a concert that showed a potential virtual version of himself in the game. 
O'Neal also captioned a TikTok video of his performance with "Toronto…last night was EPIC," putting EPIC in all caps as a potential play on Epic Games, along with a winking face emoji.
O'Neal's collaboration with Fortnite could include skins, accessories, sound clips and a potential musical performance as DJ Diesel, as <a href="https://gamerant.com/fortnite-leak-nba-legend-shaquille-shaq-oneal/">reported </a>by Game Rant. 
Epic Games and O'Neal have not confirmed anything yet, leaving gamers to decipher the leaks and hints from the former NBA's stars social media posts.
Did You Know?
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<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent100124">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
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Why It's Important: Fortnite is known for its partnerships and collaborations that often include skins and accessories that can be bought by gamers.
This freemium model of a free game with in-game purchases has helped Fortnite be one of the most successful games for parent Epic Games, which counts Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) as a 40% owner.
Through <a href="https://www.benzinga.com/news/earnings/24/02/36993564/disney-invests-1-5b-in-fortnite-owner-epic-games-in-biggest-ever-gaming-entry-posts-q1-earnings-bea">an investment by</a> The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) in Epic Games, more Star Wars, Marvel and Pixar characters have made their way into Fortnite in recent months.
Several musicians have appeared to perform music in Fortnite or as purchasable skins including Marshmello, Travis Scott, Ariana Grande and Metallica.
O'Neal is not a stranger to video games with multiple "Shaq Fu" games previously released and his appearance in various NBA games.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/sports/24/09/40866143/shaquille-oneal-reflects-on-divorce-fatherhood-and-personal-accountability-i-was-lost-76-000-squar">Shaquille O&#8217;Neal Reflects On Divorce, Fatherhood And Personal Accountability: &#8216;I Was Lost. 76,000 Square Foot House By Yourself&#8217;</a></li>
</ul>
Image: Shutterstock

Entertainment

NBA Legend Shaq Coming To Fortnite? Leaks Show Skins, Accessories, And A Potential DJ Diesel Performance

Parents of Fortnite-obsessed kids can now breathe a little easier with the introduction of Time Limit Controls, a new feature that lets them manage how long their children <a href="https://www.benzinga.com/general/gaming/24/02/37371214/your-kid-could-be-bullied-for-not-buying-skins-in-fortnite-no-distinction-between-online-offline-w">play the game. </a>
This latest update, rolled out today by Epic Games, which has the financial backing of China&#8217;s&nbsp;Tencent Holdings ADR&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), enhances parental oversight within one of the most popular video games worldwide.
See Also: <a href="https://www.benzinga.com/general/entertainment/22/12/30047324/no-eating-no-sleeping-is-a-hit-video-game-too-addictive-for-children-class-action-lawsuit-m">No Eating, No Sleeping: Is A Hit Video Game Too Addictive For Children? Class Action Lawsuit Moves Forward</a>
Fortnite previously faced criticism for its in-game purchases and lack of robust parental controls. With this new feature, the game takes a step forward in addressing these concerns.
Parents can now set playtime limits directly in-game via the Parental Controls section or online through the Epic Account Portal. These controls not only let parents restrict how long kids can play but also allow them to set specific windows for gameplay.
<h1 class="wp-block-heading">Customizable Options For Parents</h1>
One of the standout elements of the new feature is its flexibility. Parents can decide whether or not their children can request more time as their allotted minutes wind down. This function allows for real-time decision-making based on behavior or other factors, giving parents a customizable tool that adapts to their needs.
Epic Games also included a Time Reports system that provides parents with detailed breakdowns of how much time their children spend playing Fortnite. Reports can be accessed online, where daily playtime summaries, weekly totals and a record of any extra time granted is provided.
<h1 class="wp-block-heading">What Kids Will See</h1>
For the kids, the system is built with transparency. As playtime runs out, they'll see notifications popping up to remind them how much time they have left for that day, starting when they hit the 30-minute mark. They'll also find a button that allows them to request more time, a feature that alerts their parent via email.
<h1 class="wp-block-heading">Expanding Parental Controls</h1>
This latest addition to Fortnite's parental controls follows several other features introduced in recent years. Epic Games has steadily built a suite of tools that includes limits on voice and text chat, restrictions on mature language, controls over adding friends, payment limitations and restrictions on accessing higher age-rated content.
The move comes at a crucial time, as Epic Games has faced a series of legal challenges surrounding purchasing mechanics and inadequate parental control measures. With the new Time Limit Controls, the company aims to further align with the demands of parents and regulators who want more stringent oversight within the game.
In recent news, the company recently filed a lawsuit against Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google and Samsung. Find out everything about it<a href="https://www.benzinga.com/general/gaming/24/09/41098067/epic-games-files-new-antitrust-lawsuit-against-google-samsung-over-app-store-restrictions"> here.</a>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/gaming/22/12/30130293/fortnite-tricks-players-to-purchase-stuff-and-invades-childrens-privacy-its-maker-will-pay-520m-to">Fortnite&#8217; Tricks Players To Purchase Stuff And Invades Children&#8217;s Privacy? Its Maker Will Pay $520M To Settle FTC Accusation</a></li>
<li><a href="https://www.benzinga.com/general/gaming/24/08/40116772/new-child-safety-laws-could-transform-gaming-industry-regulations">New Child Safety Laws Could Transform Gaming Industry Regulations</a></li>
</ul>
Photo: Shutterstock.

GOOG

GOOGL

Fortnite Just Made Parenting Easier: How To Control Your Kid's Playtime With Latest Update

Epic Games, the developer behind the globally popular game Fortnite, has launched a new legal battle, this time accusing Samsung and Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google of <a href="https://www.benzinga.com/topic/antitrust">antitrust violations. </a>
In a lawsuit filed in a U.S. federal court in California, Epic claimed the two tech giants conspired to protect the Google Play Store from competition, significantly limiting consumer choice, Reuters<a href="https://www.reuters.com/legal/epic-games-accuses-samsung-google-scheme-block-app-rivals-2024-09-30/"> reported.</a>
See Also: <a href="https://www.benzinga.com/general/gaming/24/08/40423388/epic-games-mobile-store-goes-live-in-europe-ceo-says-apple-had-to-be-challenged">Epic Games Mobile Store Goes Live In Europe, CEO Says Apple &#8216;Had To Be Challenged&#8217;</a>
The heart of the lawsuit revolves around Samsung&#8217;s Auto Blocker feature, which Epic alleges was designed to discourage users from downloading apps from authorized sources other than Google's Play Store or Samsung&#8217;s Galaxy Store.
Auto Blocker, a security feature first introduced as optional in 2023, became the default setting on Samsung smartphones by July 2024. 
According to Epic, the feature is intentionally difficult to disable, limiting users&#8217; ability to install apps from alternative app markets.
<h1 class="wp-block-heading">Claims Of Unfair Competition</h1>
During a press briefing, Tim Sweeney, CEO of Epic Games, said: &#8220;Google is pretending to keep the user safe by saying you&#8217;re not allowed to install apps from unknown sources. Well, Google knows what Fortnite is as they have distributed it in the past.&#8221;
&#8220;It&#8217;s about misleading users into thinking competitors&#8217; products are inferior to the company&#8217;s products themselves,&#8221; he added.
Epic, which has the financial backing of China's Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), argued Google's and Samsung's actions violate U.S. antitrust laws by restricting consumer choice and preventing the emergence of a more competitive app ecosystem — one that would ultimately reduce the cost of apps.
<h1 class="wp-block-heading">Samsung's Response</h1>
In response to the lawsuit, Samsung issued a statement dismissing Epic's claims as &#8220;baseless,&#8221; asserting that the Auto Blocker feature aligns with the company&#8217;s commitment to user security.
 "The features integrated into our devices are designed in accordance with Samsung's core principles of security, privacy, and user control," the company stated. "Users have the choice to disable Auto Blocker at any time, and we remain fully committed to safeguarding users&#8217; personal data."
Samsung also affirmed its intent to &#8220;vigorously contest&#8221; the allegations made by Epic Games.
<h1 class="wp-block-heading">A Broader Battle for App Store Freedom</h1>
Epic's lawsuit marks the latest chapter in the company's ongoing crusade against app store monopolies. 
In December 2023, Epic scored a significant victory when a U.S. court ruled against Google, forcing the tech giant to allow easier access to third-party apps.
Epic alleged Samsung's Auto Blocker was specifically designed to blunt the impact of that ruling.
This new lawsuit also added to the company&#8217;s previous battles with Google and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) over their app store payment structures. Epic argued against the 30% commission fees imposed on developers.
That particular conflict led to Fortnite being removed from Google Play and Apple's App Store for nearly four years. However, following regulatory scrutiny in the European Union, Fortnite was reinstated on iPhones in the EU and made available again on Google's Android devices globally last month.
<h1 class="wp-block-heading">The EU's Role</h1>
In addition to its U.S. lawsuit, Epic plans to bring its concerns to regulators in the EU. The EU has long been critical of Google's business practices, frequently investigating the tech giant over issues related to competition and consumer choice.
Epic is expected to argue Google's control over app distribution is harmful not just in the U.S., but around the world .
In related news, the Epic Games Store has surpassed 10 million mobile installs in its first 1.5 months. Despite slower growth, Sweeney remains confident, calling the 100 million year-end goal "totally achievable," The Verge <a href="https://www.theverge.com/mobile/2024/9/30/24258120/the-epic-games-store-has-crossed-10-million-installs-on-mobile-in-its-first-1-5-months">reported.</a>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/gaming/24/09/40843191/epic-ea-ubisoft-face-accusations-of-deceit-over-in-game-purchases-eu-complaint-filed">Epic, EA, Ubisoft Face Accusations Of Deceit Over In-Game Purchases – EU Complaint Filed</a></li>
</ul>
Photo: Shutterstock.

Legal

AAPL

Epic Games Files New Antitrust Lawsuit Against Google, Samsung Over App Store Restrictions

Chinese stocks surged to their highest levels in four months on Monday, following the People&#8217;s Bank of China&#8217;s (PBoC) slashing <a href="https://www.benzinga.com/topic/interest-rates">a key interest rate</a>.
The surprise move reignites hopes for additional stimulus in the <a href="https://www.benzinga.com/topic/china">world&#8217;s second-largest economy.</a> 
The iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) — which tracks major Chinese firms like Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Tencent Holding Ltd. (OTCPK: TCEHY), JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), and Baidu Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NYSE">BIDU</a>) — is up more than 2% as of 11:20 a.m. ET in New York. It&#8217;s a level not seen since late May.
<h3 class="wp-block-heading">PBoC Cuts Rates, Inject Liquidity</h3>
On Sept. 23, the People&#8217;s Bank of China unexpectedly reduced the 14-day reverse repurchase rate by 10 basis points to 1.85%, down from 1.95%.
Additionally, the central bank injected CNY 74.5 billion ($10.2 billion) of liquidity into the banking system through this operation, according to an official statement. The PBoC also pumped CNY 160.1 billion via seven-day reverse repos, maintaining the rate at 1.7%.
These measures come on the heels of the central bank's decision last week to keep key lending rates at record lows, following surprise cuts in July. 
Monday&#8217;s policy moves in China are likely seen as part of broader efforts to stimulate consumption ahead of the National Day Holiday, a week-long break that starts on Oct. 1. 
<h3 class="wp-block-heading">Market Reactions</h3>
Chinese ADRs (American Depository Receipts) rallied sharply in response, outpacing broader market gains. 
Other Chinese-linked ETFs made moves Monday:
<ul>
<li>Kraneshares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) was up 2%</li>
<li>iShares MSCI China (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), up 1.7%</li>
<li>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>) up1.6%.</li>
</ul>
On the same day, the U.S. Commerce Department proposed a ban on the import and sale of Chinese-made vehicles equipped with automated driving systems and critical communications software and hardware due <a href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks">to national security concerns</a>.
This ban is scheduled to take effect in 2027. 
Electric vehicle (EV) manufacturers like Shanghai-based NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) and Guangzhou, China-based Xpeng Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NASDAQ">XPEV</a>) also joined the broader country stock rally despite the potential negative challenges from the new regulation.
<h3 class="wp-block-heading">Monday&#8217;s Movers Among Largest Chinese Stocks</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Market Cap</td>
<td>1-Day %</td>
</tr>
<tr>
<td>Alibaba Group Holding Limited</td>
<td>$210.26B</td>
<td>2.44%</td>
</tr>
<tr>
<td>NetEase, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>)</td>
<td>$ 52.23B</td>
<td>2.59%</td>
</tr>
<tr>
<td>JD.com, Inc.</td>
<td>$ 43.60B</td>
<td>4.19%</td>
</tr>
<tr>
<td>Baidu, Inc.</td>
<td>$ 31.10B</td>
<td>3.00%</td>
</tr>
<tr>
<td>Li Auto Inc.</td>
<td>$ 22.26B</td>
<td>3.55%</td>
</tr>
<tr>
<td>DiDi Global Inc.</td>
<td>$ 19.42B</td>
<td>0.75%</td>
</tr>
<tr>
<td>KE Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEKE#NYSE">BEKE</a>)</td>
<td>$ 18.20B</td>
<td>5.60%</td>
</tr>
<tr>
<td>ZTO Express (Cayman) Inc.</td>
<td>$ 17.43B</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Tencent Music Entertainment Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TME#NASDAQ">TME</a>)</td>
<td>$ 16.34B</td>
<td>4.44%</td>
</tr>
<tr>
<td>Yum China Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NYSE">YUMC</a>) </td>
<td>$ 13.85B</td>
<td>2.38%</td>
</tr>
<tr>
<td>NIO Inc.</td>
<td>$ 11.53B</td>
<td>3.13%</td>
</tr>
</tbody>
</table>
</figure>
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Chinese Stocks Defy Biden's Auto Import Ban Concerns, Rally To 4-Month Highs As Central Bank Unexpectedly Slashes Interest Rates

Tencent Holdings Ltd (OTCPK:TCEHY) (OTCPK:TCTZF) is harnessing the power of AI to shake up the digital advertising space in <a href="https://www.benzinga.com/quote/TCEHY/news">a big way</a>. 
In an exclusive interview with Benzinga, Derek Yan, senior investment strategist at KraneShares, said that the Chinese tech giant is positioning itself to maintain a competitive edge and sustain growth in the rapidly evolving digital landscape.
<h2 class="wp-block-heading">Tencent&#8217;s AI Initiatives To Supercharge Marketing Efforts</h2>
"Tencent is leveraging its proprietary AI models to enhance ad targeting precision and attribution tracking," says Yan. This has been a critical driver of Tencent's impressive advertising revenue growth, enabling advertisers to reach consumers more effectively and boost click-through rates.
In a space where precision is everything, Tencent's AI models are proving invaluable. But the company isn't stopping there. Yan highlights how Tencent is "equipping advertisers with generative AI tools that can dynamically create ad visuals tailored for various ad placements." 
This capability allows advertisers to produce more engaging, customized ads on the fly, which has the potential to supercharge their marketing efforts and drive even more revenue.
<h2 class="wp-block-heading">How Tencent&#8217;s TikTok Rival &#8211; WeChat Is Capitalizing On New Opportunities</h2>
Tencent's flagship platforms, particularly WeChat and its video account feature (a rival to ByteDance's Douyin and TikTok), still have "substantial untapped potential for further monetization," according to Yan. 
Integrating AI technologies could unlock new opportunities to capitalize on this potential. In fact, Tencent's Executive Director and President, Martin Lau, mentioned in a recent earnings call that AI is expected to provide a near-term boost in ad revenue.
According to Yan, even a modest 10% increase in ad load within the WeChat and video account ecosystem could generate an additional RMB 10 billion (approx. $1.4 billion), most of which would go straight to profit.
<a href="AI To 'Turbocharge' Alibaba's Cloud In Bid To Rival Microsoft, Amazon, Says Strategist" target="_blank" rel="noreferrer noopener">Read Also: EXCLUSIVE: AI To &#8216;Turbocharge&#8217; Alibaba&#8217;s Cloud In Bid To Rival Microsoft, Amazon, Says Strategist</a>
<h2 class="wp-block-heading">Tencent&#8217;s Advertising Getting Stronger</h2>
With AI integration driving both operational efficiency and revenue growth, Tencent's advertising game is only getting stronger. The real question is whether Tencent can continue to outpace competitors and fully capitalize on AI's potential, or will rivals like Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#NYSE">BABAF</a>) close the gap?
One thing's for sure—Tencent is betting big on AI to keep its digital dominance intact.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40821034/exclusive-ai-in-china-the-sleeping-giant-awakens-kraneshares-strategist-says-we-sho" target="_blank" rel="noreferrer noopener">EXCLUSIVE: AI In China — The Sleeping Giant Awakens? KraneShares Strategist Says We Should Be Paying Attention</a></li>
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EXCLUSIVE: Tencent Leverages AI To 'Enhance Ad Targeting Precision,' Says Expert

According to investors and recent financial reports, the technology sector is experiencing broad weakness despite the buzz around artificial intelligence (AI). Many companies are still struggling with <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40767784/nvidia-microsofts-ai-rally-hides-tech-sectors-underlying-weakness-warn-experts-ther" rel="noreferrer noopener">the recession that started in 2022</a>.
Gaming, Streaming Platform &amp; TV
Seven of the gaming industry&#8217;s biggest names—Epic Games, Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), Roblox Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>), Microsoft Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Activision Blizzard, Mojang Studios,&nbsp;Tencent Holding Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) Supercell, and UbiSoft Entertainment Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) —are facing new accusations from the European Consumer Organisation (BEUC) of deceiving players into <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40843191/epic-ea-ubisoft-face-accusations-of-deceit-over-in-game-purchases-eu-complaint-filed" rel="noreferrer noopener">overspending on&nbsp;in-game purchases</a>.
UbiSoft faces pressure from a minority shareholder to go private following the <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40801168/ubisoft-is-mismanaged-shareholders-are-hostages-investor-demands-video-game-company-go-private-aft" rel="noreferrer noopener">release of&nbsp;Star Wars Outlaws</a>.
Martyn Ware, co-founder of the synth-pop band Heaven 17, has publicly rejected an offer from&nbsp;Take-Two Interactive Software, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>) Rockstar Games to license the group&#8217;s hit song &#8220;Temptation&#8221; in <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/09/40779329/grand-theft-auto-6-licensing-dispute-martyn-ware-slams-rockstars-extremely-low-7-500-offer" rel="noreferrer noopener">the upcoming&nbsp;Grand Theft Auto 6 (GTA 6)</a>.
Netflix Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>)&nbsp;mobile gaming catalog has surpassed 210 million downloads, marking a notable milestone in the streaming company&#8217;s <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40802898/netflix-games-hit-210m-downloads-which-game-took-the-no-1-spot" rel="noreferrer noopener">expansion into the&nbsp;gaming industry</a>.
Microsoft recent overhaul of Xbox Game Pass has brought significant changes to the subscription service, impacting how gamers access <a target="_blank" href="https://www.benzinga.com/24/09/40840369/microsofts-new-xbox-game-pass-tiers-which-games-will-you-lose" rel="noreferrer noopener">some of the industry&#8217;s&nbsp;anticipated titles</a>.
Pay-TV provider DirecTV lodged a complaint against Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>)&nbsp;with the&nbsp;Federal Communications Commission, accusing <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/09/40765624/disney-accused-of-bad-faith-negotiations-by-directv-in-fcc-complaint-ahead-of-trump-harris-" rel="noreferrer noopener">the mouse house of &#8220;bad faith&#8221; negotiations</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40808078/directv-and-disneys-couldnt-even-agree-on-bringing-abc-temporarily-back-for-the-trump-harris-debate" rel="noreferrer noopener">DirecTV And Disney&#8217;s Couldn&#8217;t Even Agree On Bringing ABC Temporarily Back For The Trump-Harris Debate</a>
Smartphones
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) introduced the&nbsp;iPhone 16&nbsp;series, which is &#8220;designed for Apple <a target="_blank" href="https://www.benzinga.com/news/24/09/40780100/apple-intelligence-ready-iphone-16-with-faster-processor-dedicated-camera-button-announced-check-pri" rel="noreferrer noopener">Intelligence from the ground up,&#8221;</a>
The&nbsp;iPhone 16&nbsp;series will be powered by&nbsp;ARM&nbsp;Holdings&#8217; (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) latest chip technology, <a target="_blank" href="https://www.benzinga.com/news/24/09/40766753/iphone-16-to-feature-arms-next-gen-ai-chip-technology-what-you-should-know-about-apples-move" rel="noreferrer noopener">designed to improve AI capabilities</a>.
Related: <a target="_blank" href="https://www.benzinga.com/news/24/09/40767418/iphone-16-series-production-data-unveiled-by-top-apple-analyst-9m-to-16m-units-shipments-for-august" rel="noreferrer noopener">iPhone 16 Series Production Data Unveiled By Top Apple Analyst: 9M To 16M Units Shipments For August And September Expected</a>
Apple&nbsp;has commenced the production of its newly launched iPhone 16 series in India, reflecting <a target="_blank" href="https://www.benzinga.com/news/24/09/40826717/apples-iphone-production-move-to-india-signals-broader-tech-exodus-from-china-with-microsoft-and-ama" rel="noreferrer noopener">a broader trend among tech giants</a>.
Apple unveiled the Apple Watch Series 10, featuring <a target="_blank" href="https://www.benzinga.com/news/24/09/40779019/apple-watch-series-10-announced-with-larger-display-thinner-design" rel="noreferrer noopener">a larger display and thinner design</a>. The company also announced the AirPods 4, with the price starting at $129, while the <a target="_blank" href="https://www.benzinga.com/news/24/09/40779374/apple-announces-airpods-4-with-wireless-charging-along-with-a-new-anc-variant-prices-start-at-129" rel="noreferrer noopener">AirPods 4 ANC is priced at $179</a>.
Apple is reportedly in discussions with&nbsp;Micron, Tata Group and other Indian chip manufacturers to procure <a target="_blank" href="https://www.benzinga.com/news/24/09/40785446/apple-in-talks-with-micron-tata-group-to-secure-india-made-chips-for-locally-made-iphones" rel="noreferrer noopener">semiconductors for its locally-produced&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/09/40785446/apple-in-talks-with-micron-tata-group-to-secure-india-made-chips-for-locally-made-iphones" rel="noreferrer noopener">iPhones</a>.
Chinese tech heavyweight&nbsp;Huawei Technologies&#8217;&nbsp;newest tri-fold smartphone, the&nbsp;Mate XT, attracted 1.3 million orders <a target="_blank" href="https://www.benzinga.com/news/24/09/40765746/apples-iphone-16-launch-parade-on-monday-gets-rained-on-by-huawei-chinese-companys-tri-fold-phone-ge" rel="noreferrer noopener">within seven hours of opening reservations</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40765900/apple-watch-ultra-3-announcement-unlikely-at-mondays-glowtime-event-says-top-analyst-i-also-wouldnt" rel="noreferrer noopener">Apple Watch Ultra 3 Announcement Unlikely At Monday&#8217;s &#8216;Glowtime&#8217; Event, Says Top Analyst: &#8216;I Also Wouldn&#8217;t Rule Out…&#8217;</a>
Apple seems to have silently phased out its controversial FineWoven iPhone cases, as they are no longer <a target="_blank" href="https://www.benzinga.com/news/24/09/40809459/apple-quietly-phases-out-categorically-terrible-finewoven-iphone-cases-report" rel="noreferrer noopener">available on the company's website</a>.
Technology
Meta Platforms, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>),&nbsp;Snap&nbsp;Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>), and&nbsp;ByteDance-owned&nbsp;TikTok have announced a joint initiative to combat&nbsp;the spread of <a target="_blank" href="https://www.benzinga.com/news/24/09/40846628/meta-snap-and-tiktok-come-together-to-combat-suicide-and-self-harm-content-online-will-share-signals" rel="noreferrer noopener">suicide and&nbsp;self-harm content online</a>.
In a strategic move to enhance its product offerings,&nbsp;Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) is reportedly contemplating the acquisition of certain <a target="_blank" href="https://www.benzinga.com/news/24/09/40745239/apple-supplier-qualcomm-eyes-intel-units-to-bolster-product-line-report" rel="noreferrer noopener">segments of&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/09/40745239/apple-supplier-qualcomm-eyes-intel-units-to-bolster-product-line-report" rel="noreferrer noopener">Intel Corp. </a><a target="_blank" href="https://www.benzinga.com/news/24/09/40745239/apple-supplier-qualcomm-eyes-intel-units-to-bolster-product-line-report" rel="noreferrer noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)</a>.
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rival&nbsp;Groq&nbsp;announced on Tuesday that it will deploy AI in Saudi Arabia in 2024, in partnership with&nbsp;Aramco Digital, at the ongoing Global <a target="_blank" href="https://www.benzinga.com/news/24/09/40796193/groq-to-deploy-ai-in-saudi-arabia-with-aramco-aims-to-match-2023-microsoft-openai-capacity-by-2025" rel="noreferrer noopener">AI Summit (GAIN) in Riyadh, Saudi Arabia</a>.
Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) subsidiary&nbsp;Google&nbsp;underscored the importance of empowering users with fact-check tools amid the rising use of AI, at the third edition of the Global AI Summit <a target="_blank" href="https://www.benzinga.com/news/24/09/40788721/google-underscores-importance-of-empowering-users-with-fact-check-tools-amid-rising-use-of-ai" rel="noreferrer noopener">(GAIN) in Riyadh, Saudi Arabia</a>.
In response to a global IT outage triggered by a faulty software update,&nbsp;Microsoft has announced <a target="_blank" href="https://www.benzinga.com//node/40791329" rel="noreferrer noopener">plans to host a cybersecurity summit</a>.
Microsoft has reportedly laid off 650 employees in its gaming division, months after the company laid off 1,900 employees following its&nbsp;$68.7 <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40829756/microsoft-cuts-650-xbox-jobs-amid-restructuring-following-activision-blizzard-deal-report" rel="noreferrer noopener">billion acquisition&nbsp;of&nbsp;</a><a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40829756/microsoft-cuts-650-xbox-jobs-amid-restructuring-following-activision-blizzard-deal-report" rel="noreferrer noopener">Activision Blizzard</a>.
Samsung Electronics&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) instructed its global subsidiaries to decrease sales and marketing staff by around 15% <a target="_blank" href="https://www.benzinga.com/news/24/09/40812318/samsung-to-reportedly-slash-global-workforce-by-up-to-30-in-certain-divisions-amid-intense-competiti" rel="noreferrer noopener">and administrative staff by up to 30%</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40826639/mark-zuckerberg-live-event-sold-out-stadium-meta-ceo-attracted-thousands-eager-to-hear-him-speak-on" rel="noreferrer noopener">Mark Zuckerberg Live Event Sold Out Stadium: Meta CEO Attracted Thousands Eager To Hear Him Speak On &#8216;The Next Decade Of Social, Technology, And AI&#8217;</a>
Elon Musk
Tesla&nbsp;and&nbsp;SpaceX&nbsp;CEO&nbsp;Elon Musk&nbsp;has expressed his astonishment at&nbsp;YouTube&#8217;s&nbsp;decision to restrict teenagers&#8217;&nbsp;access <a target="_blank" href="https://www.benzinga.com/news/24/09/40766389/elon-musk-expresses-disbelief-over-youtubes-restriction-on-fitness-videos-for-teens-globally-serious" rel="noreferrer noopener">to certain health and&nbsp;fitness videos</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40784773/elon-musk-liked-the-camera-on-iphone-15-but-iphone-16-doesnt-get-much-love-from-the-techno-king-here" rel="noreferrer noopener">Elon Musk Liked The Camera On iPhone 15, But iPhone 16 Doesn&#8217;t Get Much Love From The Techno King: Here&#8217;s What He Said</a>
Musk revealed that Tesla's Dojo 2 supercomputer should be&nbsp;in volume production by the&nbsp;end of 2025. The tech mogul expressed confidence in Dojo's potential but noted that its true capabilities would only be known after the third <a target="_blank" href="https://www.benzinga.com/news/24/09/40787336/elon-musk-reveals-timeline-for-teslas-dojo-supercomputer-upgrade-comparable-to-a-nvidia-b200-type-sy" rel="noreferrer noopener">major iteration, expected in late 2026</a>.
Artificial Intelligence
OpenAI,&nbsp;the AI research lab,&nbsp;has launched a new model, ‘o1', which is the first in a series of "reasoning" models. This model can answer complex questions faster than a human. The company has also introduced a <a target="_blank" href="https://www.benzinga.com/top-stories/24/09/40842891/openai-unveils-o1-model-a-step-closer-to-human-like-ai-but-not-without-flaws" rel="noreferrer noopener">smaller, more affordable version, ‘o1-mini'</a>.
ChatGPT-parent&nbsp;OpenAI&nbsp;is reportedly in discussion to raise $6.5 billion in equity financing, which <a target="_blank" href="https://www.benzinga.com/news/24/09/40825072/openais-valuation-could-skyrocket-to-150b-in-new-fundraising-positioning-it-among-the-worlds-most-va" rel="noreferrer noopener">could&nbsp;bring its valuation&nbsp;to $150 billion</a>.
OpenAI CEO&nbsp;Sam Altman faced backlash from&nbsp;ChatGPT&nbsp;subscribers after he responded to a user's<a target="_blank" href="https://www.benzinga.com/news/24/09/40846309/sam-altman-wants-chatgpt-users-to-have-gratitude-for-magic-intelligence-in-the-sky-after-they-ask-ab" rel="noreferrer noopener"> question about&nbsp;new voice features</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40825968/bipartisan-coalition-of-42-state-ags-urges-congress-to-mandate-surgeon-general-warnings-on-social-me" rel="noreferrer noopener">Bipartisan Coalition Of 42 State AGs Urges Congress To Mandate Surgeon General Warnings On Social Media Apps Like TikTok, X, And Meta&#8217;s Instagram To Address Growing Mental Health Concerns</a>
Google's artificial intelligence model,&nbsp;PaLM2, has come under the radar of Europe's privacy watchdog over concerns <a target="_blank" href="https://www.benzinga.com/news/24/09/40824870/google-ai-model-palm2-under-probe-for-data-regulations-breach-by-european-privacy-watchdog" rel="noreferrer noopener">related to the handling of personal data</a>.
Mark Cuban, the&nbsp;billionaire entrepreneur&nbsp;and&nbsp;part-owner of the&nbsp;Dallas Mavericks, has publicly praised&nbsp;Elon Musk&#8217;s AI chatbot,&nbsp;Grok, to Vice President&nbsp;Kamala Harris&#8217; immigration <a target="_blank" href="https://www.benzinga.com/news/24/09/40767860/mark-cuban-praises-elon-musks-ai-chatbot-grok-for-answering-kamala-harris-pov-on-immigration-i-think" rel="noreferrer noopener">viewpoint, terming it as &#8220;accurate&#8221;</a>.

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Consumer Tech News (Sep 8-Sep 14): Gaming Industry Biggies Facing Accusations For Decieving Players, Apple Launches iPhone 16 & More

Microsoft Corp's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) latest round of gaming layoffs has impacted key teams at Activision Blizzard, with those behind Call of Duty: Warzone Mobile and Warcraft Rumble <a href="https://www.benzinga.com/markets/equities/24/09/40829756/microsoft-cuts-650-xbox-jobs-amid-restructuring-following-activision-blizzard-deal-report">bearing the brunt. </a>
These layoffs, numbering 650, follow an earlier cut of 1,900 employees this year, bringing the total to 2,550 since Microsoft's $69 billion acquisition of the gaming giant.
See Also: <a href="https://www.benzinga.com/24/09/40840369/microsofts-new-xbox-game-pass-tiers-which-games-will-you-lose">Microsoft&#8217;s New Xbox Game Pass Tiers: Which Games Will You Lose?</a>
While Xbox head Phil Spencer assured employees that no games were canceled or studios closed, reports indicate the teams working on Activision Blizzard's mobile titles have been affected. <a href="https://www.gamefile.news/p/microsoft-gaming-layoffs-xbox-650">According</a> to Game File, both Call of Duty: Warzone Mobile and Warcraft Rumble development teams saw significant cuts.
<h1 class="wp-block-heading">Mobile Gaming Troubles At Activision Blizzard</h1>
Released in March 2024, Call of Duty: Warzone Mobile was touted as a mobile extension of the successful Warzone franchise, with features like battle royale gameplay for up to 120 players and cross-progression with console and PC versions of Warzone, Modern Warfare 2 and the upcoming Black Ops 6.
Despite these innovations, the mobile title has not met the company's high expectations. Game File's Stephen Totilo pointed out that Warzone Mobile "didn&#8217;t hit as big as hoped," leading to a reduction in the game's team size, though the title will remain online.
This is a notable development considering the success of Call of Duty Mobile, developed by Tencent Holdings ADR&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) TiMi Studio Group, which garnered over 650 million downloads since its launch.
With Warzone Mobile being developed in-house at Activision, the company aimed for greater financial returns, as it wouldn't have to share revenue with Tencent. However, the results suggest that the game's potential in the competitive mobile shooter market has fallen short.
<h1 class="wp-block-heading">Warcraft Rumble Team Also Impacted</h1>
Similarly, Warcraft Rumble, a free-to-play mobile tower defense game, launched in 2023 with initial success. But, according to internal reports, interest in the game has waned, pushing it into a quieter post-launch live operations phase. The layoffs have hit the game's team, reflecting the shifting priorities as Microsoft recalibrates its mobile gaming focus under Activision Blizzard.
In a memo sent to employees, Spencer hinted at these changes without directly naming the titles, saying, "there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games."
Microsoft's acquisition of Activision Blizzard was in part motivated by its ambitions in the mobile gaming market, particularly through Activision's ownership of King, the developer behind Candy Crush. However, the recent struggles of both Warzone Mobile and Warcraft Rumble call into question the company's mobile-first strategy.
<h1 class="wp-block-heading">What's Next For Microsoft?</h1>
The company is set to launch Call of Duty: Black Ops 6 this October, which will be the first mainline Call of Duty title available on Game Pass from day one. 
In addition, there are heavy rumors of an Xbox handheld console in development, and plans for next-generation Xbox consoles are already in motion. The company's next big release, Indiana Jones and the Great Circle, is scheduled for PC and Xbox this December, with a PlayStation 5 release to follow shortly after.
While layoffs are never easy, especially for those affected, Microsoft's overall gaming business remains robust. In the last quarter, gaming content sales surged, largely due to the integration of Activision Blizzard's titles, helping offset declining hardware sales. 
The latest financial report revealed a 44% year-over-year <a href="https://www.benzinga.com/general/gaming/24/07/40081075/microsoft-reports-sharp-decline-in-xbox-hardware-sales-for-q4-but-theres-a-silver-lining">increase in gaming revenue</a>, with a 61% rise in content and services revenue, both driven by the addition of Activision Blizzard's portfolio.
The pressure is now on Microsoft to prove that its lofty $69 billion investment can deliver sustained growth, particularly as it grapples with challenges in the mobile sector.
Read Next:
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<li><a href="https://www.benzinga.com/trading-ideas/24/09/40857729/microsofts-job-cuts-in-the-gaming-division-post-activision-blizzard-acquisition-signal-a-major-shak">Microsoft&#8217;s Job Cuts In The Gaming Division Post Activision-Blizzard Acquisition Signal A Major Shake-Up But The Stock Experiences A 13% Year-To-Date Growth</a></li>
</ul>
Photo: Shutterstock.

Activision Blizzard Mobile Games Face Cuts After Microsoft's Latest Round Of Layoffs: What Went Wrong With Warzone Mobile?

Seven of the gaming industry's biggest names—Epic Games, Electronic Arts Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), Roblox Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>), Microsoft Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Activision Blizzard, Mojang Studios, Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) Supercell, and Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>)—are facing new accusations from the European Consumer Organisation (BEUC) of deceiving players into overspending on <a href="https://www.benzinga.com/general/gaming/24/07/39844220/82-of-american-gamers-made-in-game-purchases-in-freemium-titles-last-year">in-game purchases. </a>
The BEUC's complaint, filed Thursday alongside the European Commission and the European Network of Consumer Authorities, calls for urgent action to address what it describes as &#8220;deceptive tactics&#8221; used by these companies to mislead consumers, particularly children, into spending more money than they intend.
See Also: <a href="https://www.benzinga.com/general/gaming/24/03/37567854/epic-victory-fortnite-returns-to-ios-in-europe-as-apple-relents-on-eu-ban">Epic Victory: Fortnite Returns To iOS In Europe As Apple Relents On EU Ban</a>
<h3 class="wp-block-heading">In-Game Currency Deception</h3>
GamesIndustry.biz <a href="https://www.gamesindustry.biz/epic-ea-roblox-and-more-face-eu-complaint-over-tricking-players-into-spending">reports</a> the complaint alleges that companies &#8220;trick&#8221; consumers into overspending through the use of in-game currencies, a common feature in popular video games.
The BEUC has called for a ban on paid in-game currencies or, at the very least, a prohibition on their use by players under 18. The organization further demanded better protection for consumers by clarifying their legal rights when it comes to these transactions.
&#8220;The online world brings new challenges for consumer protection, and it shouldn&#8217;t be a place where companies bend the rules to increase profits,&#8221; said BEUC's director general Agustin Reyna. 
&#8220;Companies are well aware of children&#8217;s vulnerability and use tricks to lure younger consumers into spending more,&#8221; Reyna added.
<h3 class="wp-block-heading">Industry Response</h3>
In response to the allegations, Video Games Europe, an industry representative body, defended its members, asserting that they respect European consumer laws. 
A statement <a href="https://techcrunch.com/2024/09/12/bad-credits-consumer-group-files-eu-suit-over-manipulative-payments-in-games-like-fortnite-and-minecraft-calls-for-a-ban/">shared</a> with TechCrunch said: &#8220;Players can experience entire games without spending any money, giving them the opportunity to try games without any upfront cost or commitment.&#8221; 
The group also insisted that its members support and promote &#8220;fair and transparent principles&#8221; for in-game purchases, including currency systems.
The organization further pointed to the PEGI Code of Conduct, which requires that the real-world cost of in-game currency be &#8220;clear and unambiguous at the point of purchase.&#8221;
<h3 class="wp-block-heading">In-Game Purchases: A History Of Controversy</h3>
This is far from the first time major games companies have faced scrutiny for their monetization practices. EA, for instance, has long been under fire for the use of loot boxes in its popular FIFA Ultimate Team mode, which sparked a class-action lawsuit in 2020. Critics have claimed that the loot boxes are a form of gambling, particularly given their appeal to younger audiences.
In 2022, the U.S. ordered Epic Games to pay $520 million to settle charges. The FTC accused the Fortnite maker of using deceptive techniques to trick users into making unwanted charges and violating children's privacy laws.
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/08/40423388/epic-games-mobile-store-goes-live-in-europe-ceo-says-apple-had-to-be-challenged">Epic Games Mobile Store Goes Live In Europe, CEO Says Apple &#8216;Had To Be Challenged&#8217;</a></li>
</ul>
Photo: Shutterstock

Epic, EA, Ubisoft Face Accusations Of Deceit Over In-Game Purchases – EU Complaint Filed

Cainiao Smart Logistics Network, a unit of Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), has launched next-day delivery services in Europe as part of its strategy to expand globally.
The service includes a 2 euros ($2.20) option for deliveries in Spain and Portugal. In contrast, a three-day delivery service priced at 3-5 euros is available in other European countries, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3278130/alibaba-logistics-arm-cainiao-launches-next-day-delivery-europe-builds-new-hubs" rel="noreferrer noopener">cites</a> from the 2024 Smart Global Logistics Summit in&nbsp;Hangzhou.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40813395/jack-ma-urges-alibaba-to-embrace-competition-highlights-growth-opportunities" rel="noreferrer noopener">Jack Ma Urges Alibaba to Embrace Competition, Highlights Growth Opportunities</a>
During the Summit, the company also revealed plans to develop a new batch of global e-commerce logistics hubs to serve e-commerce platforms, brands, and merchants worldwide.
A fleet of aircraft that can transport goods internationally within 72 hours will support Cainiao&#8217;s global logistics network.
In March, Alibaba Group abandoned its <a target="_blank" href="https://www.benzinga.com/news/24/03/37966074/alibabas-strategy-shift-aims-for-turnaround-with-enhanced-logistics-and-share-buybacks-earns-analyst" rel="noreferrer noopener">initial public offering plans</a> for its logistics arm, citing strategic and current market considerations. Instead, Alibaba Group proposed integrating Cainiao with core e-commerce operations to regain market share and drive growth.&nbsp;
Alibaba Group stock is down 4% in the last 12 months.
The Chinese e-commerce juggernaut&#8217;s inclusion in the cross-border Stock Connect program marks a key turnaround opportunity, SCMP cites historical trends.
Hong Kong-listed tech giants like Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), Meituan (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MPNGF#OTC">MPNGF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MPNGY#OTC">MPNGY</a>), and Xiaomi Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACF#OTC">XIACF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>) experienced significant stock price increases following their inclusion in the Stock Connect program, SCMP <a target="_blank" href="https://www.scmp.com/business/china-business/article/3278094/alibaba-benefit-more-cross-border-link-trading-history-tencent-meituan-shows" rel="noreferrer noopener">cites</a> from its compiled data.
In the six months after joining, the stocks gained 12%-23%. Over 12 months, Meituan and Xiaomi saw even more significant gains, more than doubling in value.
Price Action: BABA stock is up 0.32% at $85.09 at the last check Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/news/earnings/24/08/40390854/alibaba-q1-earnings-revenue-miss-amid-price-war-profit-beat-international-commerce-and-cloud-segmen" target="_blank" rel="noreferrer noopener">Alibaba Q1 Earnings: Revenue Miss Amid Price War, Profit Beat, International Commerce and Cloud Segments Shine</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Emerging Markets

Media

MPNGF

XIACF

XIACY

Alibaba Launches Cainiao Next-Day Delivery In Europe, Plans Global E-Commerce Hubs

While the world focuses on Silicon Valley, one investment strategist is taking heed of China&#8217;s bold moves in <a href="https://www.benzinga.com/topic/artificial-intelligence">the artificial intelligence space</a>.
What Happened: Derek Yan, a senior investment strategist at KraneShares, spoke to Benzinga about how China&#8217;s internet giants are laying the groundwork for massive AI adoption.
U.S. investors can access China AI opportunities through ETFs like the KraneShares Hang Seng TECH Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KTEC#NYSE">KTEC</a>). The ETF tracks Hong Kong&#8217;s 30 largest tech companies, offering exposure to high-growth, innovative sectors like cloud, e-commerce and fintech. It&#8217;s market cap-weighted with an 8% cap per stock. 
Top holdings of the ETF include Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#NYSE">BABAF</a>), Meituan (OTCPK: MPNGF), Tencent Holdings Ltd (OTCPK: TCEHY), JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), Xiaomi Corp (OTCPK: XIACF) and Kuaishou Technology (OTCPK: KUASF).
One way Chinese companies are taking a lead is by training their own models or using open-source ones — particularly in industries like entertainment, marketing and health care, Yan says.
The vast pool of data gathered from over a billion internet users is advantageous to companies when training large language models, he adds.
"China&#8217;s internet companies have previously proven successful in commercializing new technologies," Yan said, citing the mobile tech boom that fueled the rise of these giants.
Read Also: <a href="https://www.benzinga.com/news/24/07/39702149/china-dominates-global-generative-ai-adoption-as-local-startups-face-fierce-competition-from-the-lik">China Dominates Global Generative AI Adoption As Local Startups Face Fierce Competition From The Likes Of Alibaba And Baidu</a>
Why It Matters: China's pace of adoption is nothing short of impressive, the strategist said.
"Chinese consumers tend to adopt new technology quicker than global peers," Yan said, adding that this agility is evident in how quickly AI is being integrated. Companies like Kuaishou are already seeing success, with their AI model Kling rivaling OpenAI's Sora, he said. 
By 2025, we'll see big Chinese enterprises adopting AI on a massive scale, Yan said. 
The stage is set for generative AI to transform China's business landscape, potentially driving huge growth in earnings for internet companies, in his view. 
And with AI tools improving customer experience and cost efficiency, it's clear China isn't just catching up — it's preparing to leapfrog into the future.
Read Next: 
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<li><a href="https://www.benzinga.com/government/24/09/40748185/chinas-markets-still-manage-to-get-nvidia-ai-chips-via-smuggling-report">China&#8217;s Markets Still Manage To Get Nvidia AI Chips Via Smuggling: Report</a></li>
</ul>
Image: Shutterstock

Specialty ETFs

KTEC

KUASF

EXCLUSIVE: AI In China — The Sleeping Giant Awakens? KraneShares Strategist Says We Should Be Paying Attention

Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) faces pressure from a minority shareholder to go private, following the release of <a href="https://www.benzinga.com/topic/star-wars">Star Wars Outlaws. </a>
Slovakia-based hedge fund AJ Investments, which holds less than 1% of Ubisoft&#8217;s stock, issued an open letter to the company&#8217;s board of directors, including CEO Yves Guillemot and major shareholder Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), criticizing Ubisoft&#8217;s recent performance and share value.
See Also: <a href="https://www.benzinga.com/general/gaming/24/09/40717689/star-wars-outlaws-sales-slump-ubisoft-shares-hit-near-10-year-low">Star Wars Outlaws Sales Slump: Ubisoft Shares Hit Near 10-Year Low</a>
<h3 class="wp-block-heading">Share Price Decline And Investor Demands</h3>
The release of Star Wars Outlaws, developed by Ubisoft&#8217;s Massive Entertainment, was expected to boost the company's financial outlook, but early reviews and a lukewarm reception from players have raised concerns. 
Following the game&#8217;s release, Ubisoft's stock price dropped over 10% within two days of Star Wars Outlaws&#8217; release.
At that point, Ubisoft's share price dropped to 15.34 euros ($16.91). That&#8217;s its lowest level since 2014, with a market capitalization of 1.97 billion euros.
Since then, shares have declined even further, closing 7.1% lower on Monday, Sept. 9, at 13.67 euros. Currently, Ubisoft stock is trading at 13.25 euros.
&#8220;Ubisoft at current state is mismanaged and shareholders are hostages of Guillemot family members and Tencent who take advantage of them,&#8221; the open letter reads,<a href="https://www.gamesindustry.biz/ubisofts-share-price-tumbles-again-as-minority-investor-calls-for-the-company-to-go-private"> according</a> to GamesIndustry.biz.
&#8220;Management is focused on pleasing investors with beating quarterly results and not focusing on long-term strategy to provide exceptional experience for the gamers,&#8221; it continues.
AJ Investments also raised the possibility of initiating a "proxy fight" to gather support from other minority shareholders to push for a sale if the company does not respond to their demands.
AJ Investments' letter went beyond Star Wars Outlaws, criticizing the management of several of Ubisoft's other projects. The fund pointed to the free-to-play shooter XDefiant, which is also struggling to gain traction.
Skull and Bones is delayed and The Division Heartland was cancelled, the investor noted. The letter further expressed concerns about long-dormant franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs.
However, AJ Investments did acknowledge the success of Ubisoft's live service game Rainbow Six Siege, saying it "is doing great."
<h3 class="wp-block-heading">Future Expectations For Ubisoft</h3>
Ubisoft has yet to publicly respond to the letter or comment on the performance of Star Wars Outlaws. 
Earlier this year, Guillemot stated that the company had a &#8220;solid&#8221; start to its financial year. He also expressed confidence in its upcoming releases, including Star Wars Outlaws.
Assassin&#8217;s Creed Shadows is scheduled for release in November.
Read Next: 
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<li><a href="https://www.benzinga.com/general/gaming/24/08/40445836/ubisoft-cuts-45-more-jobs-in-latest-round-of-us-studio-layoffs">Ubisoft Cuts 45 More Jobs In Latest Round Of US Studio Layoffs</a></li>
</ul>
Image: Shutterstock

Ubisoft Is 'Mismanaged, Shareholders Are Hostages': Investor Demands Video Game Company Go Private After Stock Drop

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) is set to join China&#8217;s Stock Connect program, allowing approximately 200 million mainland-based investors to invest in the $400 billion e-commerce company.
The inclusion will open Alibaba&#8217;s Hong Kong-listed shares to onshore traders, which has the potential to enhance investor access and drive capital inflows significantly.
The company&#8217;s shares will be part of the southbound channel of the Stock Connect initiative starting Tuesday, SCMP <a target="_blank" href="https://www.scmp.com/business/china-business/article/3277821/alibaba-join-stock-connect-tuesday-potential-us12-billion-boost-market" rel="noreferrer noopener">cites</a> Shanghai and Shenzhen stock exchanges.
The addition of Alibaba to the program is expected to attract up to $12 billion in onshore funds within six months, SCMP cites from Morgan Stanley forecast.
Prior reports claimed that the addition to Stock Connect by September 9 could <a target="_blank" href="https://www.benzinga.com/government/24/08/40600509/alibabas-stock-connect-addition-may-unlock-3-2b-boost-global-markets-report" rel="noreferrer noopener">unlock up to</a> $3.2 billion in cash across global markets.
Alibaba&#8217;s listing in the Stock Connect will align it with other top Chinese tech companies like Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and Xiaomi Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACF#OTC">XIACF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>), which are already accessible to mainland investors. This move follows Alibaba&#8217;s recent switch to a dual-primary listing in Hong Kong.
Alibaba Group&nbsp;lost over 9.4% in the last 12 months. Investors can gain exposure to the stock through SPDR NYSE Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XNTK#NYSE">XNTK</a>) and Invesco Nasdaq Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PNQI#NASDAQ">PNQI</a>).
Price Action: BABA stock is down 0.29% at $80.95 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Also Read:
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Photo Via Shutterstock

PNQI

XNTK

Alibaba Joins China's Stock Connect, Eyes Billions In Investment Boost

Roblox Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>) announced multiple upcoming changes to encourage more traditional game developers. Techcrunch <a target="_blank" href="https://techcrunch.com/2024/09/06/roblox-introduces-new-earning-opportunities-for-creators-teases-generative-ai-project/'" rel="noreferrer noopener">cites</a> Roblox chief product officer Manuel Bronstein in an interview.
The online gaming company is looking to open up more opportunities for creators, including a project that will power generative AI creation on the platform.&nbsp;TechCrunch reports that Roblox proposed a "Price Optimization" tool to help developers identify the best price for in-experience purchases.&nbsp;
Creators will now receive 50% of the revenue for paid experiences worth $9.99, 60% for experiences worth $29.99, and 70% for experiences worth $49.99, TechCrunch cites from the annual Roblox Developers Conference Friday. The creators earn about 25% of the revenue for their paid experiences.&nbsp;
Roblox CEO and Co-Founder&nbsp;Dave Baszucki&nbsp;eyes 10% of the global video-game content market when it reaches 300 million daily active users by collaborating with Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>),&nbsp;Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and&nbsp;Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>),
Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-06/roblox-aims-to-attract-10-of-180-billion-gaming-content-market?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> from the conference.
Baszucki told Bloomberg that the gaming market accounts for $180 billion in content revenue annually.
Roblox also tapped&nbsp;Shopify Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) to help users sell physical products through digital Roblox experiences.
The gaming company also revealed plans for a new program to price paid-access experiences on desktop versions in real currency.
Baszucki told Bloomberg that in 2023, Roblox paid over $800 million to its community of game developers.
Roblox's fiscal 2024 investor guidance of <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40099661/robloxs-q2-earnings-31-topline-growth-increased-user-engagement-guidance-hike" rel="noreferrer noopener">$4.2 billion in bookings</a> is about 2% of the global gaming market, which Baszucki estimates currently at $160 billion and $180 billion, the Verge <a target="_blank" href="https://www.theverge.com/2024/9/6/24237685/robloxs-ceo-on-getting-to-1-billion-users" rel="noreferrer noopener">reports</a>. Baszucki told Verge its ambition is to reach 1 billion users, citing that Roblox could beat the entire AAA game industry.
Roblox stock gained 53% in the last 12 months. Investors can gain exposure to the stock through Vanguard Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VO#NYSE">VO</a>) and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
Price Action: RBLX stock is up 1.79% at $44.42 premarket at the last check Monday.
Photo via Shutterstock

SHOP

Roblox Targets 1B Users, Boosting Growth Through Apple, Alphabet, and Shopify Collaborations

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) artificial intelligence chips are still selling in Chinese markets at discounted rates of up to 60% after entering the country via <a target="_blank" href="https://www.benzinga.com/government/24/07/39616102/despite-restrictions-nvidia-chips-are-still-reaching-china-wsj" rel="noreferrer noopener">smuggling and other channels</a>.
Smaller Chinese cloud providers are renting Nvidia AI servers at $6 an hour versus the $10 an hour charged by their U.S. counterparts despite the U.S. semiconductor sanctions, the Financial Times <a target="_blank" href="https://www.ft.com/content/10aacfa3-e966-4b50-bbee-66e13560deb4" rel="noreferrer noopener">reports</a>.
It signals that Chinese tech giants remain heavily invested in their AI ambitions despite the export controls.
The discounts reflect the vast availability of the banned A100 and H100 chips, advertised for sale on Chinese social media and e-commerce sites like Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Taobao and in electronics markets at a slight premium, as per FT.
The black market also highlights China&#8217;s cheaper labor and resources, allowing smaller vendors to remain competitive despite illegally sourcing components.
FT noted that Alibaba and ByteDance charge twice to fourfold the price of smaller local vendors due to stricter regulatory compliance.
<a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">Recent reports claimed</a> Alibaba, Tencent Holding (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) spent 50 billion Chinese Yuan ($7 billion) on capital expenditures in the first half of 2024, compared to 23 billion Chinese Yuan a year ago.
China earmarked 43.5 billion yuan ($6.12 billion) for computing data centers, according to the<a target="_blank" href="https://www.benzinga.com/government/24/08/40622630/us-embargo-fuels-chinas-6b-plus-data-center-investment-report" rel="noreferrer noopener"> National Data Bureau</a>.
Nvidia had maintained that the semiconductor sanctions had minimal to no impact on business, while companies like Alibaba acknowledged the downsides of the export controls.
Price Action: NVDA stock traded lower by 1.54% at $105.58 premarket at the last check Friday.
Photo via Shutterstock

China's Markets Still Manage To Get Nvidia AI Chips Via Smuggling: Report

Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Taobao and Tmall e-commerce platforms have started accepting payment from rival Tencent Holding&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) WeChat app in September, CNBC <a href="https://www.cnbc.com/2024/09/04/alibaba-to-allow-payment-through-tencents-wechat-pay-on-e-commerce-apps.html" target="_blank" rel="noreferrer noopener">cites</a> a familiar source. 
The move reflects Alibaba&#8217;s attempts to trigger growth in its China e-commerce business, which intense domestic competition and price wars have battered. Alibaba stock is down 13% in the last 12 months.
Alibaba&#8217;s move has the potential to help it expand its market share in less developed parts of China, CNBC cites the source.
So far, Alibaba&#8217;s Chinese e-commerce sites have promoted Alipay, a preferred payment method of its fintech affiliate Ant Group. WeChat has over 1.3 billion users globally, most of whom are in China.
Last week, Alibaba scored a big win by <a target="_blank" href="https://www.benzinga.com/government/24/08/40650893/alibaba-clears-3-year-regulatory-antitrust-scrutiny-stock-gains" rel="noreferrer noopener">bagging a clean chit</a> from the Chinese market regulator, signaling the completion of a&nbsp;three-year regulatory crackdown.
Also, Taobao and Tmall Group&nbsp;created a new <a target="_blank" href="https://www.benzinga.com/news/24/09/40708358/alibabas-taobao-and-tmall-launch-new-tech-venture-eyeing-global-market-growth" rel="noreferrer noopener">&#8220;digital technology&#8221; company</a> to focus on importing and exporting goods, selling food and daily groceries, household appliances, and technology-related services.
In August, Alibaba reported a fiscal first-quarter topline growth of 4% year-on-year to $33.47 billion, missing the analyst consensus of $34.81 billion. Taobao and Tmall Group revenue decreased by 1% to $15.60 billion.
Investors can gain exposure to Alibaba Group through Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action: BABA stock traded lower by 0.34% at $82.19 premarket at the last check Thursday.
Photo Via Shutterstock

AVEM

Alibaba's E-Commerce Platforms Now Accept WeChat Payments, Aiming for Market Expansion in China

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) continues to make waves in the artificial intelligence (AI) chip market, even as Chinese tech giant Huawei Technologies Co faces significant challenges in its bid to compete.
Despite Huawei&#8217;s efforts to create a domestic alternative with its Ascend series, the company&#8217;s software, particularly the Cann platform, reportedly struggles to match the ease of use and efficiency offered by Nvidia&#8217;s CUDA platform, industry insiders reveal, the Financial Times <a target="_blank" href="https://www.ft.com/content/3dab07d3-3d97-4f3b-941b-cc8a21a901d6" rel="noreferrer noopener">reports</a>.
Huawei, striving to compete against Nvidia&#8217;s well-established position, has taken proactive steps by dispatching engineers to assist clients like Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), iFlytek, and Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) in transitioning their systems from Nvidia&#8217;s CUDA to Huawei&#8217;s Cann.
Despite these challenges, Huawei has seen growing demand for AI chips, driven partly by supply constraints and the U.S. government&#8217;s tightened export controls on high-performance silicon.
<a target="_blank" href="https://www.benzinga.com/news/24/08/40659587/nvidias-blackwell-chip-potential-signals-strong-future-growth-analysts" rel="noreferrer noopener">Analysts remain optimistic</a> about Nvidia&#8217;s future despite challenges with its new Blackwell chips, which are nearly double the size of their predecessors and face manufacturing issues impacting yields and margins. Wall Street projects third-quarter revenue and EPS of $32.50 billion and $0.73.
Nvidia stock gained 146% in the last 12 months, buoyed by the AI frenzy. Investors can gain exposure to the stock through Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>).
Price Action:&nbsp;NVDA stock traded down 7.65% at $110.24 at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock

Nvidia Maintains AI Chip Dominance as Huawei Struggles to Compete: Report

In the face of U.S. sanctions, Chinese tech giants have doubled their capital expenditure in 2024, with a heavy focus on artificial intelligence (AI) infrastructure. 
What Happened: Alibaba (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), and Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) together invested 50 billion Chinese yuan ($7 billion) in the first half of 2024, a significant increase from 23 billion Chinese yuan ($3.22 billion) the previous year. The investments are primarily directed towards processors and infrastructure for training large language models for AI, the Financial Times <a href="https://www.ft.com/content/31bffc48-2ca7-472b-9d53-3deaad2d86ce">reported</a> on Monday.
ByteDance, the parent company of TikTok, has also increased its AI-related expenditure, utilizing its $50 billion cash reserve and relative freedom from investor scrutiny.
Despite U.S. export controls limiting access to Nvidia Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) leading AI processors, Chinese tech giants are acquiring lower-performance processors like Nvidia&#8217;s H20. Analysts predict Nvidia will ship over a million of these processors to Chinese tech groups in the coming months.
See Also: <a href="https://www.benzinga.com/markets/asia/24/08/40531142/jd-stock-slips-into-death-cross-after-walmart-sells-stake?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">JD Stock Slips Into Death Cross After Walmart Sells Stake</a>
Why It Matters: The ramped-up investment in AI by Chinese tech giants is a response to Chinese President Xi Jinping&#8217;s call for <a href="https://www.benzinga.com/news/24/06/39480781/xi-jinping-urges-china-to-ramp-up-tech-innovation-amid-ongoing-chip-dispute-with-us">the country to boost</a> its innovation capabilities amid the ongoing chip dispute with the U.S. Jinping pointed out that &#8220;some key, core technologies are controlled by others,&#8221; indicating a lack of top scientific and technological talents.
Chinese AI developers have also found ways to access advanced Nvidia Corp chips without importing them into China, leveraging <a href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment">computing power abroad</a> through brokers.
Since 2023, Alibaba and Tencent have directed a <a href="https://www.benzinga.com/markets/asia/24/08/40480304/chinese-tech-giants-alibaba-and-tencent-ramp-up-ai-investments-with-nearly-a-third-of-deals-since-20">significant portion of their deals</a> in China towards AI startups, marking record-high investments in the sector for both companies. This shift in focus comes at a time when the two tech giants have been scaling back their investments due to regulatory challenges, the impact of the COVID-19 pandemic, and a slowing Chinese economy.
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Photo by William Potter on Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

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China's economy has demonstrated a solid start in 2024, in line with the annual growth targets. Given this backdrop, it could be wise to buy top Chinese stocks Alibaba Group Holding (BABA), Ping An Insurance (PNGAY), and Tencent Holdings (TCEHY) as the nation's economy rebounds. Read more... China is shifting from high-speed growth in GDP to a focus on advanced technology and manufacturing, aiming to enhance the quality and sustainability of economic development.
Hence, investors could consider buying fundamentally sound China stocks Alibaba Group Holding Limited (<a href="https://stocknews.com/stock/BABA/">BABA</a>), Ping An Insurance (Group) Company of China, Ltd. (<a href="https://stocknews.com/stock/PNGAY/">PNGAY</a>), and Tencent Holdings Limited (<a href="https://stocknews.com/stock/TCEHY/">TCEHY</a>) as the economy rebounds.
Earlier this year, China announced an ambitious goal of <a href="https://www.weforum.org/agenda/2024/06/china-economic-outlook-growth-trade/">reaching 5% economic growth</a> in 2024. Today, nearly seven months into the year, economists and government officials say they are optimistic that China can achieve its goal.
Policies that boost domestic consumption reduce reliance on exports and encourage technological innovation further propel industrial growth. Initiatives like "<a href="https://www.scmp.com/news/china/science/article/3260307/made-china-2025-china-meets-most-targets-manufacturing-plan-proving-us-tariffs-and-sanctions">Made in China 2025</a>" focus on upgrading the manufacturing sector, enhancing productivity, and promoting high-tech industries.
Considering these encouraging trends, let's take a look at the fundamentals of the three best <a href="https://stocknews.com/category/china/">China</a> industry stocks, starting with the third choice.
Stock #3: Alibaba Group Holding Limited (<a href="https://stocknews.com/stock/BABA/">BABA</a>)
Based in Hangzhou, China, BABA provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage internationally with their users and customers. 
In terms of the trailing-12-month EBIT margin, BABA's 14.03% is 78.7% higher than the 7.85% industry average. Its 15.04% trailing-12-month levered FCF margin is 197.2% higher than the 5.06% industry average. Likewise, the stock's 7.38% trailing-12-month net income margin is 65.4% higher than the 4.46% industry average.
During the quarter that ended June 30, 2024, BABA's revenue increased 3.9% year-over-year to RMB234.16 billion ($33.23 billion). Its income from operations was RMB35.99 billion ($5.11 billion) for the quarter. The company's non-GAAP <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> and EPS came in at RMB40.69 billion ($5.77 billion) and RMB2.05, respectively.
Analysts expect BABA's revenue and EPS for the fiscal year (ending March 2025) to increase 10.4% and 3.6% year-over-year to $143.65 billion and $8.91, respectively. Moreover, BABA's stock has gained 35.4% over the past month to close the last trading session at $112.84.
BABA's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has a B grade for Momentum, Sentiment, and Quality. It is ranked #13 in the 38-stock B-rated <a href="https://stocknews.com/category/china/">China</a> industry.
Beyond what is stated above, we've also rated BABA for Growth, Stability, and Value. Get all BABA ratings <a href="https://stocknews.com/stock/BABA/">here</a>.
Stock #2: Ping An Insurance (Group) Company of China, Ltd. (<a href="https://stocknews.com/stock/PNGAY/">PNGAY</a>)
Based in Shenzhen, PNGAY provides financial products and services for insurance, banking, asset management, and technology businesses in China. It operates in Life and Health Insurance; property and Casualty Insurance; Banking; Trust; Other Asset Management; and Technology segments.
For the three-month period, which ended on March 31, 2024, PNGAY's total revenue amounted to RMB275.89 billion ($39.15 billion), while its insurance revenue grew 2.8% from the prior-year period to RMB136.85 billion ($19.42 billion). The company's profit for the period amounted to RMB45.05 billion ($6.39 billion). In addition, its attributable EPS came in at RMB2.03.
Analysts expect PNGAY's revenue for the year ending December 2025 to increase 5.2% year-over-year to $83.05 billion.
Shares of PNGAY have gained 61.5% over the past six months to close the last trading session at $13.92.
PNGAY's POWR Ratings reflect bright prospects. The stock has an overall rating of B, which equates to Buy in our proprietary rating system.
PNGAY has an A grade for Growth and a B for Momentum. It is ranked #7 in the same industry.
In addition to the POWR Ratings highlighted above, one can access PNGAY's ratings for Value, Sentiment, Quality, and Stability <a href="https://stocknews.com/stock/PNGAY/">here</a>.
Stock #1: Tencent Holdings Limited (<a href="https://stocknews.com/stock/TCEHY/">TCEHY</a>)
Based in Shenzhen, China, TCEHY is an investment holding company that provides value-added services (VAS), online advertising, fintech, and business services globally. The company operates through VAS; Online Advertising; FinTech and Business Services; and Other segments.
The stock's trailing-12-month EBIT margin and EBITDA margin of 30.44% and 33.80% are 229% and 85.6% higher than the 9.25% and 18.21% industry averages, respectively. Its trailing-12-month ROTA of 9.23% compares with the industry average of 1.27%.
In the second quarter that ended June 30, 2024, TCEHY's total revenues increased 8% year-over-year to RMB161.12 billion ($22.87 billion). Its gross profit grew 21.3% from the prior year's quarter to RMB85.90 billion ($12.19 billion). Its non-IFRS operating profit came in at RMB58.44 ($8.29 billion), up 26.9% from the year-ago value.
In addition, non-IFRS profit attributable to equity holders of the company grew 52.6% year-over-year to RMB57.30 billion ($8.13 billion). Its non-IFRS earnings per share for profit attributable to equity holders of the company rose 85.3% from the previous year's quarter to RMB6.01.
Street expects TCEHY's revenue and EPS for the third quarter (ended September 2024) to increase 12.5% and 37.6% year-over-year to $23.99 billion and $0.88, respectively. Further, the company has topped consensus EPS estimates in each of the trailing four quarters, which is impressive.
The stock has gained 50.7% over the past six months and 54.6% over the past year to close the last trading session at $59.43.
TCEHY's bright outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
TCEHY has an A grade for Stability and a B for Sentiment. It is ranked #6 out of 38 stocks within the same industry.
Beyond what is stated above, we've also rated TCEHY for Growth, Value, Momentum, and Quality. Get all TCEHY ratings <a href="https://stocknews.com/stock/TCEHY/">here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/tcehy-baba-pngay-3-chinese-stocks-to-buy-as-their-economy-rebounds/>3 Chinese Stocks to Buy as Their Economy Rebounds</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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