- Tencent Holding Ltd TCEHY Shareholders added $7.6 billion worth of shares to Hong Kong’s clearing and settlement system, spurring speculation that its largest shareholder Naspers Ltd NAPRFgave up part of its 29% stake, The Financial Times reports.
- Tencent’s international investment arm Prosus previously backed out of its commitment not to sell Tencent shares.
- Global investors reduced their holdings in Chinese tech stocks following government crackdown and a regulatory onslaught.
- The S&P China Tech 50 Index is down 36% over the past 12 months.
- SoftBank sold those majority of his share in Alibaba Group Holding Limited BABA in August, during Warren Buffett’s Berkshire Hathaway reduced its holdings at a Chinese electric car manufacturer BYD Co.,Ltd BYDDY.
- Ke Yan, an analyst at DZT Research, said it was “likely” the seller was Naspers, as it had already announced plans to gradually reduce its stake.
- Tencent reported his first Quarterly revenue decline for the June quarter after ad revenue shrank 18%.
- Mizuho Analyst James Lee repeated a purchase on Alibaba with a price target of $160 after an investor call with Alibaba, which left him confident on the margin expansion story.
- The analyst said management should focus on electric vehicles and financial services, which have the greatest need for data.
- Alibaba serves as a barometer of China’s tech industry.
- Price promotion: TCEHY shares closed at $39.86 on Wednesday.
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