Hong Kong — For clues on what Tencent Holdings’s shares will do tomorrow, look to the traders who got it spot on in August. The options market is pricing in a 6.6% move for the stock either way following the internet giant’s third-quarter update after Hong Kong’s market closes on Wednesday. This would mark the biggest post-results reaction since August 2015, data compiled by Bloomberg shows. Derivatives traders have also sent the cost of hedging Tencent — of which Naspers owns just more than 30% — to a one-year high relative to the Hang Seng Index, after the stock became twice as volatile as the benchmark. Despite a $243bn loss of shareholder value since January that’s already broken all kinds of records, the outlook for some of Tencent’s most profitable businesses is getting bleaker: China’s economic slowdown is putting a lid on advertiser spending, while regulators are unlikely to loosen their grip on the gaming industry. Another warning sign came just last week with Japanese riva...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.