Who just sold Tencent?
$TENCENT(00700)$ stake worth $7.6 billion has just appeared in Hong Kong clearing and settlement system. Is a major shareholder liquidating its stake in the Chinese online gaming and e-commerce giant that owns WeChat?
It was later disclosed that Prosus (the greatest consumer internet company in Europe and among the largest technology investors globally, and an internet assets division of multinational corporation Naspers based in South Africa), which is the longtime and largest shareholder of Tencent and its angel investor / early backer during its startup has shifted 192 million shares of Tencent to the Hong Kong’s clearing and settlement system in order to facilitate an orderly sale of the shares to fund future buyback of its own shares to bolster its stock.
In fact, Naspers had already sold 1 million of the said shares yesterday, trimming its stake in Tencent below 28%.
With a slowing economy, latest lockdown in some areas across China to suppress the resurgence of new COVID-19 cases, as well as continued restrictions that have stifled growth in the technology sector, I’ve refrained from adding more Tencent shares to my holdings in the meantime.
Nevertheless, I believe in the long-term prospects of China’s economy and the resolve of its government. I believe that after President Xi has been re-elected for another term, the Chinese government will turn its full attention to strengthen its economy and support its technology industry that has fallen on hard times after the relentless crackdown in the last couple of years.
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