Tencent loses over $14 billion in market capitalization after India bans PUBG Mobile

According to report by Reuters, The Shares of Chinese gaming and social media powerhouse Tencent fell more than 2% on Thursday after India banned 118 mobile apps, including the firm’s popular videogame PUBG.

The stock traded 2.2% lower at HK$533 in the afternoon, on track to snap two straight sessions of gain.

The list of 118 mostly Chinese apps also includes those from Baidu and Xiaomi’s ShareSave, as India stepped up pressure on Chinese technology firms following a standoff with Beijing at the border.

The Indian government banned 118 Chinese apps on Wednesday for engaging in activities “prejudicial to sovereignty and integrity of India, defence of India, security of state and public order”. The govt ban came at a time when there’s considerable tension across borders of India and China after Indian Army’s stand-off along the Line of Actual control in eastern Ladakh with Chinese troops.

PUBG Mobile not only has a huge fanbase but also a growing esports scene in the country. With mobile esports on the rise, PUBG Mobile leads the charts in India with very high viewership, big prize pools and even excellent organizations flourishing this industry. PUBG Mobile gave rise to prominent streamers like Scout, Dynamo and Mortal in India.

This ban is a huge shocker for casual players as well as the professional players who are currently grinding on their way to lift the trophy. To those who don’t know, esports industry related to PUBG Mobile was the biggest in India, bringing in massive prize pools like ₹50 lakh in PMIS and dominant teams like Orange Rock reaching very close to becoming world champions for this title. The ban will drastically affect everybody related to this game and it remain a question if Tencent, the parent company of PUBG Mobile, will take any action regarding this matter or not.