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Tencent (0700) to distribute shares as special dividend

By Mensholong Lepcha

02:06, 23 December 2021

Tencent office in Shenzhen, China
Tencent office in Shenzhen, China – Photo: Shutterstock

Chinese technology heavyweight Tencent Holdings plans to distribute e-commerce firm’s shares as a form of a special interim dividend to its shareholders.

The company said one class A ordinary share of will be distributed for every 21 shares of Tencent held.

Tencent will distribute 457.3 million class A shares of, representing about 86.4% of shares held by the company. The number of shares being distribute represents 14.7% of’s equity holding, as at 21 December.

US-based shareholders to receive cash

Tencent said fractional entitlements to shares will be distributed in the form of cash, while non-qualifying shareholders will also receive dividend in cash.

The company added shareholders with registered addresses in the US will be regarded as non-qualifying shareholders.


19,594.60 Price
+0.300% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.8


0.60 Price
-0.130% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


3,521.50 Price
+0.590% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00


68,011.65 Price
+0.330% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Record date for determining a shareholder’s entitlements to the special interim dividend is 25 January, Tencent added. Distribution of shares is expected to be completed by 25 March.

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Exit from

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.

“The Board believes that has now reached such a status, and the board therefore considers that it is an appropriate time to transfer the majority of the interest held by the group in directly to the company’s qualifying shareholders,” Tencent said.

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 was HKD127.7bn ($16.37bn).

Read more : Pine Labs seeks Southeast Asia expansion amid BNPL concerns

Markets in this article

JD Inc (Extended Hours)
26.29 USD
-0.08 -0.300%
JD Inc (Extended Hours)
26.29 USD
-0.08 -0.300%
374.0 USD
7 +1.920%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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