COMPANY NEWS IN BRIEF
Tencent leads Chinese tech losses
Chinese technology stocks fell as a plan by Tencent's major backer to further cut its stake in the company fuelled concerns more investors may look to take profits following a strong rally.
The Hang Seng Tech Index slid as much as 2.9% Tuesday, the most since June 22, before paring some losses. Tencent slumped as much as 5.8%, the most in nearly six weeks, after Prosus on Monday said it intends to sell more of the mobile gaming giant’s stake. JD.com Inc. - another firm in which Prosus sold stock - and Bilibili Inc., were among the other big decliners on Tuesday.
"Tencent’s big shareholder sale is definitely hurting the whole market sentiment," said Banny Lam, head of research at CEB International Investment Corp. "The tech stocks have had a good rally, so it’s not surprising for us to see people taking profit or rotating among sectors."
Prosus, an arm of South African internet giant Naspers Ltd., sold almost US$4 billion worth of stock in JD.com that it got as dividends from investee Tencent, saying on Monday that the e-commerce firm didn’t fit with its broader strategy.
The Chinese tech gauge has rebounded more than 40% from a record low in mid-March, as investors rotate back into the sector on bets that the worst of Beijing’s crackdowns -- which triggered more than a year of heavy selling is over. -Fin24
Chinese technology stocks fell as a plan by Tencent's major backer to further cut its stake in the company fuelled concerns more investors may look to take profits following a strong rally.
The Hang Seng Tech Index slid as much as 2.9% Tuesday, the most since June 22, before paring some losses. Tencent slumped as much as 5.8%, the most in nearly six weeks, after Prosus on Monday said it intends to sell more of the mobile gaming giant’s stake. JD.com Inc. - another firm in which Prosus sold stock - and Bilibili Inc., were among the other big decliners on Tuesday.
"Tencent’s big shareholder sale is definitely hurting the whole market sentiment," said Banny Lam, head of research at CEB International Investment Corp. "The tech stocks have had a good rally, so it’s not surprising for us to see people taking profit or rotating among sectors."
Prosus, an arm of South African internet giant Naspers Ltd., sold almost US$4 billion worth of stock in JD.com that it got as dividends from investee Tencent, saying on Monday that the e-commerce firm didn’t fit with its broader strategy.
The Chinese tech gauge has rebounded more than 40% from a record low in mid-March, as investors rotate back into the sector on bets that the worst of Beijing’s crackdowns -- which triggered more than a year of heavy selling is over. -Fin24
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