Tencent Cashes Out $16.4 Billion Stake in JD.com

Chinese social-media and gaming giant Tencent Holdings said Thursday it would reduce its stake in JD.com to a little over 2% from the current 17%.and distribute $16.4 billion in JD stock as a dividend to shareholders. JD.com (JD) shares fell by more than 7% Thursday. Tencent (TCEHY) shares were up 4% on the news, though is down nearly 40% since its January high.

JD.com Trucks

The move follows technology stocks in China being under pressure because of uncertainty surrounding a regulatory crackdown in Beijing. In other news

Tencent started to invest in JD.com in 2014, helping the group compete with China’s e-commerce leader Alibaba. The sale of about 457 million shares in JD.com reduces the holding to 2% and Tencent President Martin Lau has resigned from the e-commerce group’s board, the group said.

Tencent also has filed 168 copyright infringement claims against ByteDance-owned Douyin since June this year, seeking total damages of 3 billion yuan over Soul Land, an anime series that airs exclusively on Tencent Video.

After the distribution, U.S. retail giant Walmart (WMT) will become JD.com’s largest shareholder, with a 9.3% stake. 

Source: SCMP