Tencent slump shows what happens when Beijing flips the switch

A flag bearing the Tencent Holdings Ltd. logo is displayed alongside a Chinese flag outside the company's offices in Beijing, China, on Tuesday, Aug. 14, 2018. Tencent, the Chinese internet giant best known for its popular games and ubiquitous messaging services, has shed more than $150 billion in market value since a January peak, the biggest wipeout of shareholder wealth worldwide. Photographer: Giulia Marchi/Bloomberg

China long celebrated Tencent Holdings Ltd as a national champion. Now, the tech giant is getting a taste of what it’s like to be on the other side of government patronage. 

Tencent tumbled on Aug 16 after reporting its first profit drop in a decade as Chinese authorities froze approval of digital games the company needs to make money. Once the most valuable company in Asia, Tencent has seen its market cap fall by more than US$165bil (RM677.16bil) since January.