By Ambar Warrick
Investing.com – Shares of Tencent fell more than 2% on Thursday after a report suggested a stake in the Chinese internet giant worth about $7.6 billion could be put up for sale.
Tencent Holdings Ltd (HK: ) shares fell 2.2% to HK$304.80 by 11:28 PM ET (03:28 GMT), trading near their lowest levels in three weeks. They were also among the biggest weights on , which fell 0.5%.
Bloomberg reported that $7.6 billion worth of the internet giant’s shares recently appeared on Hong Kong’s clearing and settlement system, which could indicate a stake sale to major holders.
The most likely candidate for sale is the Dutch conglomerate Prosus (AS: ), which has been steadily divesting its stake in Tencent to fund share buybacks. Prosus is a unit of the Republic of South Africa Naspers Ltd (Joe:).
A stake was recently sold to an American hedge fund Berkshire Hathaway Inc (NYSE: ) in the Chinese automaker BYD Co Ltd (H:) was also telegraphed by the data of the Hong Kong Clearing and Settlement System. The shares entered the system in late June before being officially sold in August. This step also caused.
Tencent shares have weakened significantly this year as rising U.S. Treasury yields reduce appetite for tech stocks. Declining demand in Chinese markets combined with increased regulatory scrutiny also weighed on shares of Tencent and its Chinese peers.
The firm reported its first ever in the second quarter of 2022, amid pressure from the government and the COVID-19 lockdown.
Shares of Tencent peers Baidu (NASDAQ:) Inc (HK: ) and Alibaba Group Holding Ltd (HK: ), the trio of BATs, rose more than 1% each on Thursday.