Spanner in Tencent's M&A machine could be useful

Hong Kong

CHINA could be doing Tencent a small favour. The technology titan's acquisitive ways have led to a dominant position in online books, music streaming and e-sports. That strategy looks increasingly unsustainable as the country's trustbusters intensify their scrutiny. Fewer deals might be better for the company in the long run anyway.

The powerful State Administration of Market Regulation (SAMR) recently unveiled draft rules targeting monopolistic behaviour by Internet outfits. Tencent executives downplayed the potential impact on its video games and digital entertainment businesses.