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Tencent withdrew $ 16bn from at the start to change its profile

Tencent is distributing $ 16bn shares in the ecommerce group to shareholders, in the first technical phase of the technical group to determine the value of its major assets as Beijing moves forward with a review of the sector.

A technical team from Shenzhen will start offering’s standard 460m shares to shareholders in March, reducing its share from 17 percent to 2.3 percent. Tencent President Martin Lau resigned from the board on Thursday as part of a briefing.

Tencent from Shenzhen cuts part after Chinese officials this year broken on technology companies in the country, especially large corporations such as Tencent and his colleague Alibaba, who are involved in a number of industries.

China cha unbelief a supervisor in recent months has paid a fine to both companies for their past actions.

Tencent was “not building an empire” or “trying to expand its influence”, and reducing its share in helped make it clearer, said a person close to the company. The move was not triggered by any request from the authorities, the man added.

“Like [its] As history grows, people may begin to say where does it end? It could be that Tencent owns 20 percent of China’s largest companies, “he said.” Tencent wants people to see that this is not the case. “

The company did not want to “appear to be a major contributor to the long-term financial sector”, the man added.

For the past ten years Tencent has been one of the largest investors in the country, raising hundreds of technologies and gradually increasing its Rs1.2tn ($ 190bn) worth of human resources since September 30, which equates to one quarter. three of its total market value.

Highlights include 16 percent of the Pinduoduo ecommerce group, 17 percent of the Meituan catering team and about 18 percent of the Kuaishou short video program. Tencent also owns shares in US companies such as Snap and Tesla.

Tencent said in the future he could start giving up some of his responsibilities as companies mature and no longer need foreign investment.

“The Board believes that has now come to this point, and the Board considers it time to transfer [shares], ”Tencent said.

Tencent shares rose 4 percent in Hong Kong, while shares fell 7 percent. shares have performed better than their competitors this year because growth has remained strong and avoids breaking the rules.

But sharing can also lead to the sale of ecommerce groups. Participants receive one class Common Edition for every 21 Tencent shares they have.

Tencent also said it could sell some of’s stocks in the open market to address lower-level stock exchanges as well as share-distribution challenges for US investors.

Robin Zhu of Bernstein said investors often set a 20- to 30 percent discount on companies on Tencent’s finances. “Moving like today helps to release some of the essentials,” he said.

A person close to Tencent said the distribution is a new tool as well as a tax-free way to reimburse shareholders.

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