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

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Tencent Holdings Ltd.'s (OTC: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.

See Also: Chinese Gaming Firms Announce Share Buybacks Post-Regulatory Shake-Up - Will Tencent, NetEase Stocks Rebound?

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.

Read Next: Nvidia Offers Altered Gaming Chip For Chinese Customers Amid US Export Controls

Image credits: katjen on Shutterstock.

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