Shares in Tencent Holdings Limited (HKG:0700) closed up 4.4% in Hong Kong trade after the tech conglomerate made the first move to unlock the value of its portfolio.
Earlier it announced it would be distributing US$16bn worth shares in the e-commerce group JD.com to its investor base.
In doing so, it will cut its stake in the Beijing-based business-to-consumer giant, also known as Jingdong, to 2.3% from 17%.
The transaction comes against the backdrop of a Chinese government crackdown on increasingly powerful tech firms such as Tencent, Alibaba, Baidu and JD.
Chinese regulators have fined companies for their acquisition activity.
The Financial Times, quoting a person close to Tencent, said the JD divestment was designed to show the company was “not empire building” nor “trying to amass influence”.
Over recent years, the company, as well as developing its core business to rival that of Alibaba, has been an assiduous investor in the Chinese tech sector, helping start-ups, but increasingly taking on-market stakes in businesses it likes.
The FT reckons its holdings in other companies are worth US$190bn – or around a third of Tencent’s market capitalisation.