The Chinese Internet giant’s stock dropped more than 2 percent on Thursday after a report indicated a stake worth about $7.6 billion would be up for sale.
By 23:28 ET (03:28 GMT), shares of Tencent Holdings Ltd. (HK:0700) had down 2.2%, to HK$304.80, and were trading near their three-week lows. They were also major components of the 0.5% decline in the Hang Seng index.
Aslo Read: Stocks in China and Hong Kong drop because of fears about COVID.
In an indication of a potential stake sale by a significant holder, Bloomberg reported that $7.6 billion worth of the internet giant’s shares had lately emerged in Hong Kong’s clearing and settlement system.
The Dutch company Prosus (AS:PRX), which has been gradually divesting its Tencent investment to fund a share repurchase, appears to be the most likely candidate for a sale. Prosus is owned and operated by Naspers Ltd. of South Africa (JO:NPNJn).
Information from Hong Kong’s clearing and settlement system also hinted at a recent share sale by Berkshire Hathaway (NYSE: BRKa) Inc (NYSE: BRKb) in Chinese automaker BYD Co Ltd (HK: 1211).Before the official sale of shares in August, they had been entered into the system in late June. Shares of BYD had also fallen as a result of the decision.
Aslo Read: China’s Tencent will release its most popular game, “Honor of Kings,” all over the world.
Rising U.S. Treasury yields have dampened investor enthusiasm for technology companies, which has led to a big decline in Tencent’s share price this year. Shares of Tencent and its Chinese rivals have taken a hit due to weaker demand in Chinese marketplaces and more regulatory scrutiny.
In the second quarter of 2022, the company announced its first-ever sales decline due to increased government monitoring and COVID-19 lockdowns.
The other two members of the BATs trio, Tencent’s peers Baidu Inc (HK:9888) and Alibaba Group Holding Ltd (HK:9988), also saw their share prices rise by more than 1% on Thursday.
Aslo Read: Tencent drops by 2.5% as Prosus and Naspers say they will slowly sell shares.
