HONG KONG, Aug 16 (Reuters Breakingviews) - Tencent (0700.HK) is preparing for tough times ahead.
The Chinese giant plans to offload all or a chunk of its $24 billion stake in food delivery group Meituan (3690.HK), Reuters reported read more , citing sources.
The eight-year old investment has proven lucrative: annualised total returns were nearly 20% since Meituan's 2018 Hong Kong debut, versus negative 6% for the Hang Seng Index.
Nevertheless, a stock overhang — Tencent owns some 17% — sent its shares down 10% on the news.
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