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US English (JD) tumbles in Hong Kong on Tencent’s dividend plans

By Mensholong Lepcha

09:07, 23 December 2021 logo at office entrance’s stock closed 7% lower on Thursday, its biggest intraday loss since late July – Photo: Shutterstock

Chinese e-commerce platform tumbled in Hong Kong on Thursday after Tencent Holdings announced that it will distribute shares worth $16.4bn in the form of a special dividend to its shareholders.

Hong Kong-listed stock closed 7% lower at HKD259.60 on Thursday, its biggest intraday loss since late July.

On Thursday, tech giant Tencent Holdings said it will distribute 457.3 million Class A shares of, representing about 86.4% of shares held by the company, as a special dividend to shareholders.

Tencent reduces shareholding in

The number of shares being distributed by Tencent, represents 14.7% of’s equity holding, as at 21 December.

“Tencent’s shareholding in JD will be reduced to 2.3% subsequently. The two companies will maintain their mutually-beneficial business relationships, including the ongoing strategic partnership agreement,” said Jefferies in a note.


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30


38,808.40 Price
-0.100% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.62 Price
+0.200% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040

Jefferies added that Tencent does not require the approval of for the distribution of shares and that the “win-win relationship between Tencent and JD is not affected, as JD is still an important component of Tencent’s ecosystem.”

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Tencent representative leaves board 

Tencent said the reason behind distributing nearly its entire stake in was to be in line with the company’s investment strategy of investing in companies during their development stage and execute an appropriate exit in the investment.

On Thursday, announced that Tencent representative Martin Chiping Lau resigned from’s board of directors.

Based on the closing price of HKD279.2 per Class A ordinary share of, as of 22 December, the total market value of the shares to be distributed by Tencent was HKD127.7bn ($16.37bn).

Read more: China creates rare earth minerals mining behemoth

Markets in this article

JD Inc (Extended Hours)
27.23 USD
-0.15 -0.550%
JD Inc (Extended Hours)
27.23 USD
-0.15 -0.550%
321.0 USD
-5.5 -1.690%
321.0 USD
-5.5 -1.690%

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