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Tencent Falls 2.5% in Hong Kong

Investing.com - Shares of the Hong Kong-listed Tencent Holdings Ltd (HK:0700) fell 2.5% on Monday in Asia, after plunging about 7% last week following the release of a weak quarterly earnings report.

Shares in the social media and gaming giant remained on the back foot after it reported a miss on first-quarter revenue and signs of slowing growth in advertising sales, in its latest earnings report last Wednesday.

Sales growth was 16%, the slowest pace since it went public in 2004. Net income recorded a 17% rise, which was better than expected, but the figure was helped by a one-off gain of more than $1.5 billion from the expanding valuations of investments in finance and gaming companies.

The Hang Seng Index was down 0.6% amid news that Google (NASDAQ:GOOGL) has now suspended some business with Huawei and all Huawei-made phones will immediately lose access to updates to the Android operating system, the world’s most popular smartphone software.

The news sent Chinese and Hong Kong stocks lower as traders are increasingly concerned that the trade war would drag on and further impact the Chinese economy.

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