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Tencent-Backed Giants Dive on $24 Billion Meituan Sale Talk

  • Meituan shares plummet more than 9% in Hong Kong trading
  • The report spurs fears that Tencent may hive off more shares
Food delivery couriers for Meituan.

Food delivery couriers for Meituan.

Photographer: Yan Cong/Bloomberg
Updated on

Tencent Holdings Ltd.’s biggest investees plummeted after Reuters reported the social media giant intends to sell all or much of its $24 billion stake in food delivery giant Meituan to appease Beijing.

The social media giant has engaged financial advisors in recent months on ways to execute the sale of a roughly 17% stake, Reuters reported, citing sources with knowledge of the matter. Meituan slid more than 9% in Hong Kong, while video service Kuaishou Technology fell more than 4% and Bilibili Inc. dipped 2.5%. In New York, e-commerce player Pinduoduo Inc. slipped about 3%.