Tencent's Chief Exploration Officer Steps Down Amid China's Gaming, Tech Crackdown

Tencent Holdings Ltd.'s TCEHY Chief Exploration Officer, David Wallerstein, is stepping down from his management role amidst China's crackdown on technology and gaming companies.

Transitioning to a senior adviser role from Jan. 1, Wallerstein aims to focus on topics like climate and human health, Bloomberg reported.

During his more than two-decade tenure, he led investments in diverse ventures, including space-focused startups, contributing to Tencent's growth as China's largest company.

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However, the company faced setbacks as Beijing imposed sudden restrictions on various sectors in 2021, causing a substantial market value decline of over $600 billion.

Recently, in late December, China's gaming regulator introduced new constraints, triggering an $80 billion sell-off in major online entities, including Tencent.

Despite recent moderation in Chinese officials' stance, Tencent's shares remain down over 6% from Dec. 21, when the gaming regulation draft was revealed.

This departure occurs in the wake of ongoing turmoil in China's regulatory environment, impacting Tencent and its industry counterparts, signaling a challenging period for the tech and gaming sectors in the country.

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Image credits: katjen on Shutterstock.