Tech stocks sink in Hong Kong on concerns Tencent to divest more investments while Alibaba slips on antitrust fine
- Tencent pared its stake in Sea Limited, a Singapore-based consumer tech firm listed in the US, following a plan to offer its stake in JD.com as special dividend
- Declines in Meituan, Kuaishou and Bilibili, all partly owned by Tencent, have pushed the market towards its worst start to a year since 2005
The Hang Seng Index fell 1.6 per cent to 22,907.25 at the close, bringing the loss so far this week to 2.1 per cent, surpassed by only a 4.6 per cent loss in the first week of trading in 2005. The Hang Seng Tech Index tumbled 4.6 per cent, while China’s Shanghai Composite Index slid 1 per cent.
Tencent plunged 4.3 per cent after completing the sale of a 2.6 per cent stake in US-listed Singapore-based technology group Sea Limited for US$3 billion on Tuesday, raising cash for “other investments and social initiatives.”
The divestment came less than a month after the WeChat operator offered part of its stake in JD.com worth US$16.4 billion to shareholders as special dividend.
The stake disposals fanned speculation Tencent will take similar actions break up its holdings in other tech firms to circumvent more regulatory probes. Tencent has invested in companies including Meituan, Kuaishou Technology, Bilibili and China Literature at various stages, according to its financial reports.
