Hong Kong (Reuters) -Tencent Holdings (OTC: TCEHY) Ltd shares gave up early gains and fell as much as 2.5 percent to HK $374.60 in the early afternoon.This happened after Prosus (OTC: PROSF) NV and Naspers said they would slowly sell shares in the company.
In the morning, Tencent stock went up as much as 4.2% to HK $402.20, which was its highest price since June 9. In the afternoon, it went down. Last time the stock was traded, it was down 1.3%, which was the third biggest drop in the Hang Seng Tech Index.
The Hang Seng Tech Index went up by 2.1%, and the main Hang Seng Index went up by 2.3%.
Both Prosus, a Dutch company that invests in technology, and Naspers, a South African company that controls it, said on Monday that they plan to sell some of their huge stakes in the Chinese software giant Tencent to pay for a plan to buy more shares.
Naspers has a 28.78% stake in Tencent through its Amsterdam-listed subsidiary Prosus NV. Its full-year profit dropped by 16% because it put its earnings back into other businesses and because the income from its Tencent shares dropped after it sold a stake last year.
