Hong Kong Stock Market Update | Tencent Surges Over 5% as "King of Glory" Opens ByteDance Live Streaming. Institutions Expect Shareholder Reduction to Enter Final Stage.
Tencent's stock price rose more than 5%, reaching HKD 275, with a turnover of HKD 3.6 billion. "King of Glory" announced that it will be available for live streaming on Douyin, further strengthening the collaboration between Tencent and ByteDance. The company's shareholders, Prosus and its parent company Naspers, plan to gradually reduce their holdings of Tencent stocks in the long term and conduct repurchases, which is expected to alleviate the selling pressure on the stock price.
Zhitong App learned that TENCENT (00700) rose more than 5%, as of the time of writing, it rose 4.88% to HKD 275, with a turnover of HKD 3.6 billion.
On the news front, on January 13th, King of Glory announced through its official Weibo account that starting from January 21st, King of Glory's Douyin live streaming will be fully open. From January 14th to January 17th, it will be a technical testing period, during which King of Glory will invite special guest XYG eSports Club to test the live streaming in the official account's live room. From January 18th to January 20th, it will be the themed live streaming period, during which game anchor Zhang Daxian will have a continuous live streaming for 3 days.
Open Source Securities pointed out that the full opening of King of Glory on Douyin live streaming platform, on the one hand, King of Glory is expected to leverage the traffic advantage of Douyin to expand its product influence and increase user base and revenue. On the other hand, it means that the cooperation between TENCENT and ByteDance, the two internet giants, will go further, and in the future, they may expand their cooperation in more games or other fields, promoting the healthy and sustainable development of the internet industry.
Huaxi Securities believes that in 2022, the company's shareholders Prosus and its parent company Naspers announced that they will gradually reduce their holdings of TENCENT stocks and carry out repurchases in order to improve the group's NAV. As of January 16th, the market value of TENCENT held by Prosus is USD 85.1 billion, and the shareholding ratio has decreased from 33.2% to 24.9%. The reduction of holdings by major shareholders is expected to come to an end, and the selling pressure on the stock price may gradually weaken.