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Chinese internet giant Tencent said Tuesday it is temporarily suspending new user registrations for its hugely popular WeChat app, fearing new regulatory pressures despite insisting that the outage was the result of a technical upgrade.
Tencent said in a statement that the shutdown, which only affects new users and groups who sign up for the app, will end in early August and is part of a fix in security technology.
The timing of the suspension has made investors nervous, and concerns have risen that a regulatory outrage over the tech sector could greatly affect Tencent, China’s largest internet company. By far the company’s flagship product, WeChat dominates Chinese social media, allowing users to do everything from sharing photos to chatting to coffee and paying bills.
Tencent’s shares fell almost 9 percent in trading in Hong Kong. Overall, it was a tough day on Chinese stock markets, with Hong Kong’s Hang Seng Index falling 4.2 percent and the Shanghai Composite Index dropping 2.5 percent amid concerns over regulatory pressure from Beijing.
So far, Tencent has managed to avoid the worst of a nine-month government scrutiny of China’s high-tech sector, which has resulted in billions of dollars in fines for its competitors, suspension of app services and plunged share prices. as well as the companies it invests in. During the past month alone, Chinese officialssecurity reviews Internet companies that want to list their shares abroad, and banned education companies, many of which operate online and make a profit.
Tencent’s worst stake with Beijing came from car-sharing company Didi, a company it has invested in. Earlier this month, regulators launched an investigation against the company and eventually ordered its apps from mobile stores until the investigation was concluded. Shares of the company are down more than 40 percent since they were listed at the end of last month.
In a statement Tuesday, Tencent tried to downplay the suspension, but accepted the government’s hand, saying the security upgrade was “to comply with all relevant laws and regulations.”
On Saturday, China’s market regulator took separate action against Tencent, citing the country’s antimonopoly law. He fined the company a small amount of about $75,000, but also forced him to abandon exclusive deals with record companies for the music industry, claiming that an acquisition gave him excessive market share in the industry. Shares of Tencent Music, which trades in the United States, fell 3 percent on Monday and fell another 4 percent in premarket trading on Tuesday.
A pioneer in chat apps, gaming and social media, Tencent’s soft-spoken founder Pony Ma has a history of keeping the company out of the spotlight and government scrutiny.
Still, the company is known in Chinese tech circles for its aggressive competitive strategies, using massive social media platforms first built more than a decade ago to take on nascent rivals. Recently, it bought a stake in a constellation of newcomers to the internet and then tied its services to them to compete with a rival e-commerce giant, Alibaba. It’s unclear whether the small fine on music assets and silent security rework are indications that the light will go out or that the worst is yet to come.
Alibaba shows how bad things can get. In April, Chinese authorities fined the company $2.8 billion For monopolistic behavior last year, regulators suspended Alibaba’s sister company’s blockbuster listing, Ant Group, days before its initial public offering, probably cut more than $100 billion in market share.
Even as other automakers have embraced electric cars, Toyota has invested its future in the development of hydrogen fuel cells, a more costly technology that has lagged far behind electric batteries, with more hybrid use in the near term. This means that the rapid transition from gasoline to electricity on the roads could be devastating to the company’s market share and profitability.
In recent months, Toyota has quietly become the auto industry’s strongest voice against a full switch to electric vehicles – its advocates say it’s critical to tackling climate change. Hiroko Tabuchi writes in The New York Times.
Last month, Chris Reynolds, a senior executive who oversees the company’s government affairs, traveled to Washington for private meetings with congressional staff and outlined Toyota’s opposition to an aggressive transition to all-electric cars. gas-electric hybrids like the Prius and hydrogen powered cars should play a larger role than the four people familiar with the negotiations.
The latest move in Washington follows Toyota’s efforts around the world. United States of America, Britain, European union and Australia – oppose stricter car emissions standards or fight electric vehicle mandates.
NS Biden management sent letters to families warning them about the payments made this month. extended child tax credit It aims to support Americans as they get through the pandemic. Rather than claiming benefits during tax season, eligible families receive half of the credit, up to $300 per child, in monthly installments starting in July and continuing through December.
payments A welcome relief for many households, including 60 million children received $15 billion in July — but there’s some confusion about what it might mean when it comes time to file a tax return next year. Tara Siegel Bernard told The New York Times Here are some of the top reasons taxpayers might want to take a closer look at the potential tax implications or consider forgoing advance payments.
“Accepting a loan can now be a lifesaver for many, but it’s important for taxpayers to know how this will affect them during next year’s tax filing period,” said Carl Weston, director of tax practice and ethics. American Institute of Chartered Accountants, a trading group.
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