Tencent Suffers Massive Selloff After Alibaba

Tencent Holding Ltd TCEHY shareholders added $7.6 billion in shares to Hong Kong's clearing and settlement system, spurring speculation that its biggest shareholder, Naspers Ltd NAPRF, offloaded part of its 29% stake, the Financial Times reports.
Earlier, Tencent's international investment arm Prosus backed out of its pledge not to sell stock in Tencent.
Global investors downsized their holdings in Chinese technology stocks following a government crackdown and regulatory onslaught.
The S&P China Tech 50 index has been down 36% over the past 12 months.
SoftBank sold the bulk of its stake in Alibaba Group Holding Limited BABA in August, while Warren Buffett's Berkshire Hathaway trimmed its holdings in Chinese electric carmaker BYD Co, Ltd BYDDY.
Ke Yan, an analyst with DZT Research, said it was "likely" the seller was Naspers, considering it had already flagged that it would gradually trim its stake.
Tencent reported its first decline in quarterly revenues for the June quarter after advertising revenue shrank 18%.
Mizuho analyst James Lee reiterated a Buy on Alibaba with a $160 price target after an investor call with Alibaba leaving him confident about the margin expansion story.
The analyst said the management should focus on EV and financial services, which have the most significant demand for data.
Alibaba serves as the barometer of China's tech industry.
Price Action: TCEHY shares closed at $39.86 on Wednesday.