Tencent Cuts Stake In This Chinese Edtech Firm - KOOLEARN TECH HLDG LTD by Koolearn Technology Hldg Ltd.

Tencent Holding Ltd (OTC:TCEHY) slashed its stake in Koolearn Technology Hldg Ltd (OTC:KLTHF) to 1.6% from 9%, Bloomberg reports.
The Chinese education technology firm's shares surged 684% in just nine trading sessions through June 16, basking on the live-streaming e-commerce frenzy before Beijing's tech crackdown.
An analyst expressed doubts over the sustainability of the business crediting most of the rally to the retail investors.
Also Read: China Continues Its Crackdown, Penalizes Social Media Influencer $16M For Tax Evasion
Some analysts view Tencent's move as a shift to lower exposure in areas subject to Beijing's regulatory clampdown.
China reportedly called on live-streaming platforms to share more profits with peasants.
China's intense crackdown on the sector affected the quarterly results of HUYA Inc (NYSE:HUYA) and DouYu International Holdings Limited (NASDAQ:DOYU), leading to the scaling back of jobs.
However, lately, JD.com, Inc (NASDAQ:JD) Retail chief Xin Lijun acknowledged some stability in the regulatory environment.
Price Action: TCEHY shares closed at $46.73 on Friday.

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