Tencent shares trade lower after 193 million shares appear in Hong Kong’s CCASS
STOCKS
Tencent shares trade lower after 193 million shares appear in Hong Kong’s CCASS
STOCKS

Tencent shares trade lower after 193 million shares appear in Hong Kong’s CCASS

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Shares of Tencent Holdings are trading lower in Hong Kong, down 1.6% at HK$306.6 at 10:20 am local time, after data from the Hong Kong Stock Exchange showed that Tencent shareholder(s) transferred 193 million Tencent shares to Hong Kong’s Central Clearing And Settlement System (CCASS).

As of 7 September, the total number of circulating shares in the CCASS accounted for 74.09% of Tencent’s total issued shares, warrants and units, representing an increase of 2 percentage point.

While there are many reasons a stake might appear in CCASS, such moves are often seen by traders as precursors to sales because shares must enter the system before transactions can be settled.

Notably, Tencent’s Dutch-listed major shareholder Prosus in June announced a plan to cut its stake in the tech giant to fund a stock repurchase programme. Prosus said it would gradually sell an undisclosed number of Tencent shares in the open market to pay for an open-ended buy-back plan by the company and its majority owner Naspers. Prosus owns almost 2.77 billion shares, or 28.8% stake in Tencent.