Tencent stock rises 8.03%, following easing of banking concerns

Tencent Holding Ltd. TCEHY shares traded higher Tuesday after the strength in Chinese equities was possibly driven by the easing of U.S. banking concerns. The stock appears to have moved in sympathy with Alibaba BABA and reports of China vowing to keep opening its markets to foreign capital.

The details: According to a report by Reuters, China pledged to ease a regulatory crackdown and support its private enterprises, a move that was lauded by investors after two years of crackdowns on private enterprises that created a hostile environment for foreign investors. This move could benefit Tencent as a relaxed regulatory environment could lead to an increased bullish outlook on Chinese equities for foreign investors.

There were plans to undergo a restructuring of the company. The company will reorganize its business into six separate, independently-owned entities with the intent to explore fundraisings or listings for most of them. The restructuring aims to increase the flexibility and adaptability of the entities, allowing the company to streamline management and shorten decision-making.

Tencent is one of the most influential internet firms in China, as you can hardly go a day without using its products. One of the world's top-grossing mobile games, Honor of Kings, and one of China's largest social media apps, WeChat, is owned by the company. According to the data from Benzinga Pro, Tencent shares closed Tuesday up 8.03%, at $49.90. The stock has a 52 week high of $52.88 and a 52 week low of $24.75.