Tencent’s shares fell more than 8% after WeChat temporarily suspended new user registration to undergo a technical upgrade, according to Reuters.
- The company stated that the technical upgrade is to enable alignment with the relevant laws and regulations.
- Sign-up of new WeChat personal and official accounts will resume in August once the upgrade is done.
- The move happens as China tightens regulations in privacy and data security with new personal information protection laws in the making towards secure user data storage.
Analysts have pointed out that investors are overreacting to the regulatory risks in the tech industry saying the WeChat move will have no major impact on Tencent in the short term.
0700: HKG is down -8.98%.