China tightens censorship on messaging apps

New rules issued by the Chinese government will allow only registered media outlets to disseminate political information via instant messaging platforms, Bloomberg reported, citing Xinhua. Shares of Tencent (0700.HKG), the maker of WeChat, declined 3.5% on Thursday, the biggest loss in three months. “The Chinese government is ratcheting up its censorship of the internet,” said Cyrus Mewawalla of CM Research. “The fate of some of the largest Internet companies is more entwined in politics than ever and that demands investors place higher risk premiums on the sector.” China’s internet regulations have tightened since Xi Jinping became head of the Communist Party in 2012.