Prosus’ Tencent Share Sale Seen Raising Questions About Chinese Tech

Prosus has sold a 2% stake in Tencent, which raises questions about Chinese technology companies, whose stock prices have been pushed down by tighter regulatory supervision of the Chinese tech sphere, says Peter Garnry, Saxo Bank’s head of equity strategy. “The most interesting question that arises of this sale of Tencent shares is whether it is really about a valuation gap or not,” Garnry says. The Dutch internet conglomerate might be getting more worried about the trajectory of Chinese regulation, as uncertainty over big Chinese technology companies could continue to linger for years, Garnry says. Prosus said Thursday that its commitment to Tencent remains steadfast, and that it won’t sell any further shares for at least the next three years.