Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions

Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions

Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions

Shenzhen-headquartered technology conglomerate Tencent is preparing to shut down its NFT platform as early as this week, according to a report by Chinese media outlet Jiemian, quoted by the South China Morning Post. The move comes amid restrictions on the secondary trading of NFTs in the People’s Republic which are said to have hurt the platform’s business potential.To get more latest news on tencent, you can visit shine news official website.

Jiemian is citing unidentified sources from Tencent but the company has refrained from providing an official comment on the matter. Huanhe, which issues and distributes blockchain-based digital collectibles, was launched just a year ago.

All NFTs on the app are already marked as “sold out,” although users can still visit augmented reality art exhibitions. Another report quoting a different Tencent source, from the state-owned media Yicai Global, reveals that trading halted in early July in anticipation of a crackdown.Huanhe was developed by Tencent’s Platform and Content Group (PCG), which was hit hard by lay-offs earlier this year. If the NFT unit terminates activities, this would mark a major retreat by Tencent from the market of digital collectibles, the SCMP notes.

In June, Tencent’s social media app Wechat announced its intentions to prohibit public accounts facilitating secondary trading or offering guidance for non-fungible tokens. A little later, the Tencent News app stopped selling NFTs.

Other Chinese tech giants, such as Alibaba Group Holding, have been careful with their involvement with NFTs, with Chinese platforms usually substituting the NFT label with the term “digital collectibles,” which isn’t necessarily associated with cryptocurrencies.

The government in the mainland has been going after crypto-related activities, including investment, trading, and mining. It has highlighted concerns that speculation could lead to bubbles in the digital assets market, while promoting the state-issued digital yuan. According to existing regulations, the tokens can be purchased only with Chinese fiat and never resold.
Tencent Music Entertainment Group - ADR (TME) receives a strong valuation ranking of 77 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. TME has a better value than 77% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

TME has a trailing twelve month Price to Earnings (PE) ratio of 18.5. The historical average of roughly 15 shows a average value for TME stock as investors are paying fair share prices relative to the company's earnings. TME's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.34 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
TME has a 12 month forward PE to Growth (PEG) ratio of 1.37. Markets are overvaluing TME in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.340000003's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
All together these valuation metrics paint a pretty poor picture for TME at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for TME are worse than the average of the market resulting in a valuation score of 77. Click Here to get the full Report on Tencent Music Entertainment Group - ADR (TME) stock.

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