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Tencent Slashes Wager on Stock That Soared 684% in Edtech Frenzy

  • Koolearn’s shares collapsed 41% in two sessions after rally
  • Tencent’s stake cut suggests edutech rally has become overdone
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Tencent Holdings Ltd. slashed its stake in a Chinese education technology firm that staged an eye-watering rally in the past two weeks, as investors debate whether the sector’s surge is sustainable. 

The mobile gaming giant reduced its holdings in Koolearn Technology Holding Ltd. to 1.6% from 9%, according to a Hong Kong Exchange filing late Monday. Koolearn surged 684% in just nine trading sessions through June 16, as its foray into livestreaming e-commerce created social media buzz and market excitement after the sector was knocked down in Beijing’s sweeping tech crackdown last year.