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.
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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.
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