Duan Yongping has taken action!

On January 9th, Duan Yongping stated on social media that he bought today $TENCENT (00700.HK)$ , and also bought $Kweichow Moutai (600519.SH)$ 。

As of the time of publication, TENCENT has slightly rebounded today, currently up 1.25%.

In terms of news, the USA Office of the Trade Representative announced the "2024 Notorious Markets List for Counterfeiting and Privacy" on January 8, which still includes multiple Chinese Internet Plus-Related products. However, TENCENT's WeChat, which was previously on the list, has been removed this time.

It is reported that the "Notorious Markets List" aims to publicly disclose the online and physical markets where large-scale piracy and counterfeit trademarks have been identified, effectively targeting well-known products from Chinese prominent enterprises.

It is worth noting that just a few days ago, TENCENT was listed on the USA Department of Defense's list of military-related enterprises, which prompted the company to make adjustments.

Regarding this incident, TENCENT recently responded, stating that the Deputy Secretary of the USA Department of Defense has classified the company as a Chinese Military Industry enterprise. Since the company is neither a Chinese Military Industry enterprise nor a Civil-military Integration enterprise of China's defense industry, the company believes that being included in the Chinese Military Industry list is a mistake. Unlike other lists maintained by the USA government for sanctions or export control measures, being listed as a Chinese Military Industry enterprise is only related to USA defense procurement matters and will not impact the group's Business.

Additionally, TENCENT has spent 1.5 billion HKD on stock repurchases for two consecutive days, whereas the previous repurchase amount was generally around 0.7 billion HKD.

An Analyst from Deutsche Bank stated in a research report that after being included in the military industry list by the U.S. Department of Defense, TENCENT's stock price may experience fluctuations in the near future; however, this should have no impact on TENCENT's Business Operation.

The Brokerage also pointed out that despite the recent stock price fluctuations, the company's strong repurchase plan should support its stock price. Deutsche Bank maintains a Buy rating on TENCENT, with a Target Price of 540 Hong Kong dollars.

Editor/Somer