Tencent falls 2.5% as Prosus, Naspers say to gradually sell shares

Shares of Chinese internet gaming and social media giant Tencent Holdings Ltd gave up early gains to fall as much as 2.5 per cent to HK$374.60 in the early afternoon, after Prosus NV and Naspers said they would gradually sell shares in the firm.

Tencent stock surged as much as 4.2 per cent in morning trade to HK$400.20, its highest since June 9, before sliding in the afternoon. The stock last traded down 1.3 per cent, the third biggest percentage decliner in the Hang Seng Tech Index.

The Hang Seng Tech Index rose 2.1 per cent and the benchmark Hang Seng Index surged 2.3 per cent.

Dutch technology investment company Prosus and its controlling shareholder Naspers of South Africa said on Monday they intend to sell down their enormous stake in Chinese software giant Tencent to fund a share purchase programme.