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The Sell-Off in Asia’s Biggest Stock Is Nearing $100 Billion 

The accelerating sell-off could get a lot worse if the stock fails to hold above its key support level.

The Sell-Off in Asia’s Biggest Stock Is Nearing $100 Billion 
A trader takes a nap at a securities trading firm in Shanghai, China. (Photographer: Kevin Lee/Bloomberg News) 

(Bloomberg) -- Tencent Holdings Ltd.’s sell-off may get a lot worse after the shares failed to hold above their key support level.

Asia’s biggest stock closed down 0.3% in Hong Kong on Thursday, despite an otherwise upbeat market in the city. Tencent is now trading below the key level of HK$320 that supported its shares on three occasions this year. The stock has lost about 20% since a peak in April, equivalent to some $93 billion in market value.

The Sell-Off in Asia’s Biggest Stock Is Nearing $100 Billion 

While Tencent has been stuck in a downtrend for months, selling was particularly aggressive earlier this week despite no apparent trigger. Theories circulating round some trading floors included souring sentiment from investors in China, as well as concern that Tencent’s decision to air National Basketball Association games may backfire.

Adding to jitters this week was a local media report that China is considering revising a law to control young people’s online gaming activities -- a business that remains one of Tencent’s most profitable. The Internet giant will report third quarter earnings on Nov. 13.

--With assistance from Elena Popina and Cindy Wang.

To contact the reporter on this story: Jeanny Yu in Hong Kong at jyu107@bloomberg.net

To contact the editor responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net

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