Tencent Holdings Ltd. chief exploration officer David Wallerstein is leaving his management role, the company said, as the company struggles with China’s ongoing efforts to curb technology, entertainment and gaming companies.

Wallerstein will transition into a role as a senior adviser beginning Jan 1, a company spokesperson confirmed. In an internal memo on late Friday afternoon seen by Bloomberg News, Wallerstein said he planned to continue contributing on topics such as climate and human health. He did not immediately respond to a request for comment via LinkedIn.

In more than two decades at Tencent, Wallerstein was responsible for finding "moonshot” investments for the Shenzhen-based social network and gaming company. His team at one point had invested in at least 40 companies outside of China, including startups focusing on space ventures. The executive was promoted to his current executive position in 2014, according to his LinkedIn profile.

Over the same period, Tencent grew to be China’s largest company for a while, at one point closing in on a US$1 trillion valuation. The success waned after Beijing abruptly imposed curbs on sectors from e-commerce to entertainment in 2021, at one point erasing more than US$600bil in market value.

Tencent and its peers sustained further damage in late December when China’s top gaming regulator unexpectedly announced new curbs, including an unspecified cap on in-game spending. Beijing’s move led to a US$80bil selloff in some of China’s biggest online names.

Chinese officials seem to have moderated their rhetoric since, but Tencent shares are still down more than 6% from Dec. 21, the day before the gaming regulation draft notice.

 - Bloomberg