Chinese internet giant Tencent has begun repurchasing shares to stem a steep drop in its stock price, down by almost 30% since the start of this year, The Wall Street Journal reported, citing regulatory filings. The company’s shares have declined as Chinese regulators have suspended approvals of new games amid a government reorganization. Games make up the largest chunk of Tencent’s revenue.
The company’s share buybacks, which amount to almost $100 million since Sept. 7, haven’t had much impact on investor sentiment, with shares still falling around 10% over the period, the Journal said. The lack of investor confidence comes as Tencent is struggling to find new sources of growth beyond games. The company recently announced restructuring plans that focused on cloud computing and other businesses that serve corporate clients.