O WeChat, gives Tencent, temporarily suspended the registration of new users in the China continental as it undergoes a technical update “to align with relevant laws and regulations,” China’s dominant instant messaging platform said on Tuesday.
“We are currently updating our security technology to align with all relevant laws and regulations,” the company said in a statement to Reuters.
“During this time, registration of new personal and official Weixin accounts has been temporarily suspended. Registration services will be restored after the update is complete, which is expected in early August,” he added.
Weixin is the Chinese name for WeChat.
Tencent shares tumbled 9% in Hong Kong on Tuesday, hit by recent Chinese regulatory crackdowns in high-growth sectors including online platforms and, more recently, tutoring.
In the view of Beijing-based technology consultant Zhou Zhanggui, “the suspension of new user registrations on WeChat has no substantial impact on Tencent in the near term.”
Keso Hong, an independent industry analyst, said the fall in Tencent’s share price was triggered by changes in the general regulatory environment, including the crackdown on tutoring companies. “It happened today, after the market panic continued to grow,” he said.
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