Tencent shares opened lower and continued to decline on August 13, dropping more than 4% as of press time to 440.2 Hong Kong dollars per share, causing its market capitalization to fall below 4 trillion Hong Kong dollars.

On the news front, Tencent released its second-quarter 2026 financial report after the market closed on August 12. For the quarter, Tencent reported revenue of 204.785 billion yuan, an increase of 11% year-over-year and 4% quarter-over-quarter. Non-IFRS operating profit reached 75.636 billion yuan, up 9% year-over-year but flat compared to the previous quarter.

Although revenue grew, the company's investment in AI businesses during the quarter impacted operating profit. Excluding the impact of new AI products, Tencent's second-quarter Non-IFRS operating profit would have increased 19% year-over-year to 86.1 billion yuan. Due to factors such as higher capital expenditure, the company also recorded negative free cash flow for the quarter.