Tencent Cuts Stake In This Chinese Edtech Firm

Tencent Holding Ltd TCEHY slashed its stake in Koolearn Technology Hldg Ltd KLTHF to 1.6% from 9%, Bloomberg reports.
The Chinese education technology firm's shares surged 684% in just nine trading sessions through June 16, basking on the live-streaming e-commerce frenzy before Beijing's tech crackdown.
An analyst expressed doubts over the sustainability of the business crediting most of the rally to the retail investors.
Also Read: China Continues Its Crackdown, Penalizes Social Media Influencer $16M For Tax Evasion
Some analysts view Tencent's move as a shift to lower exposure in areas subject to Beijing's regulatory clampdown.
China reportedly called on live-streaming platforms to share more profits with peasants.
China's intense crackdown on the sector affected the quarterly results of HUYA Inc HUYA and DouYu International Holdings Limited DOYU, leading to the scaling back of jobs.
However, lately, JD.com, Inc JD Retail chief Xin Lijun acknowledged some stability in the regulatory environment.
Price Action: TCEHY shares closed at $46.73 on Friday.