Tencent (00700.HK) sold 272.9477 million Class B shares of Kuaishou (01024.HK) via a block trade on July 6, at a price ranging from HK$43.15 to HK$44.53 per share, raising approximately HK$11.78 billion to HK$12.16 billion. After the transaction, Tencent's stake in Kuaishou dropped from about 15.68% to 9.37%, and it is no longer a major shareholder of Kuaishou.
Tencent Reduces Kuaishou Stake: 272.9477 Million Shares, 6.2% Discount, Raising HK$12 Billion
According to Kuaishou's announcement on July 6, 2026, the specific details of Tencent's block trade are as follows:
- Sold 272.9477 million Class B shares of Kuaishou.
- Price per share ranged from HK$43.15 to HK$44.53, representing a discount of 3.2% to 6.2% from Kuaishou's Monday closing price of HK$46.
- Total proceeds amounted to approximately HK$11.78 billion to HK$12.16 billion.
- Tencent's shareholding ratio fell from about 15.68% to 9.37%, exiting the major shareholder list and becoming the second-largest shareholder.
Kuaishou's announcement stressed that the placement does not involve the issuance of new shares, and the company's business and cooperative relationship with related shareholders remain unaffected. The reason for Tencent's reduction was not disclosed in the announcement.
Stock Price Divergence: Kuaishou Falls 12%, Tencent Rises 2%
On Tuesday, July 7, 2026, Kuaishou (01024.HK) shares opened sharply lower, falling more than 13% intraday to HK$40.20, before closing at HK$40.46, down 12% for the day. Its market capitalization evaporated by about HK$24 billion in a single day, and Kuaishou's year-to-date decline has reached 35%. Meanwhile, Tencent (00700.HK) shares rose 2% against the market to HK$461.2, marking its sixth consecutive trading day of gains.
Multiple market analysts pointed out that the main concern behind the sharp drop in Kuaishou shares is the fear that Tencent may ultimately follow the pattern it used with JD.com and Meituan, eventually clearing its entire position, prompting early capital flight. These are personal interpretations by market analysts and do not constitute investment advice.
Tencent's Historical "Dividend Clearance" Precedents: JD.com and Meituan
According to historical records, Tencent adopted similar large-scale reduction models when handling core holdings: at the end of 2021, Tencent distributed approximately 460 million shares of JD.com (9618) to shareholders in the form of an interim dividend, reducing its stake from 17% to 2.3%, nearly fully exiting. In November 2022, Tencent replicated the same model, distributing about 958 million shares of Meituan (3690), accounting for roughly 90% of its holdings, reducing its stake from 17% to less than 2%. Meituan President Liu Zhiping also immediately resigned as a non-executive director of Meituan.
Comparing these two almost complete exits, Tencent's retention of 9.37% of Kuaishou has been interpreted by some market participants as still posing potential selling pressure. This is market interpretation; specific subsequent actions are subject to Tencent's official announcements.
Frequently Asked Questions
Why did Tencent reduce its Kuaishou stake, and what is the official reason?
According to Kuaishou's announcement, Tencent sold 273 million shares of Kuaishou in a block trade, but the announcement did not disclose the reason. The announcement quoted Tencent as expressing confidence in Kuaishou's long-term development prospects, with both sides continuing to maintain strategic cooperation. Market analysts have offered various interpretations (including "rotation" into Kling AI investment). These are personal analyses; the reduction reason should be based on Tencent's official disclosure.
After Kuaishou's 12% plunge, what is its current valuation?
According to reports, Kuaishou shares closed at HK$40.46 on Tuesday, down 35% year-to-date, with market cap evaporating about HK$24 billion on the day due to Tencent's reduction news. Kuaishou's Q1 2026 data showed: livestreaming revenue fell 13.47% year-on-year to RMB 8.492 billion, but Kling AI quarterly revenue more than tripled year-on-year, with ARR approaching $500 million. Real-time valuation and share price are subject to market quotes.
What is the relationship between the funding valuation of Beijing Kling AI and Kuaishou?
According to reports, Kuaishou's subsidiary Beijing Kling AI plans to introduce up to approximately $3 billion in external financing, accounting for 16.67% of the enlarged share capital, implying a valuation of over RMB 120 billion. A Tencent subsidiary contributed RMB 1.363 billion to acquire a 1.12% stake. Beijing Kling AI recorded a net loss of RMB 1.9 billion in 2025 (2.8 times the RMB 500 million loss in 2024). Specific financing arrangements and shareholding details are subject to official announcements.
