Tencent Bows Down To Regulatory Pressure After Alibaba - Report - Tencent Holdings (OTC:TCEHY), Meituan (OTC:MPNGY)

China's Tencent Holding Ltd TCEHY looks to divest fully or bulk of its $24 billion stake in food delivery firm Meituan MPNGY, Reuters reports.
Tencent aims to appease domestic regulators and monetize an eight-year-old investment by the move.
Tencent owns 17% of Meituan, valued at $24.3 billion as of August 15.
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If market conditions are favorable, Tencent looks to kick off the sale this year.
Tencent reduced holdings partly to appease the Chinese regulators and to book hefty profits on those bets.
The value of its shareholdings in listed companies excluding its subsidiaries plunged to $89 billion as of end-March from $201 billion a year ago.
Reportedly, the regulators are not happy that tech giants like Tencent have invested in and backed various tech firms that run businesses closely related to people's livelihoods in the country.
Alibaba Group Holding Limited BABA is changing its secondary listing status on the Main Board of the Hong Kong Stock Exchange to a primary listing to seek regulatory validation.
Bernstein recently hinted at the possibility of Alibaba's Hong Kong listing as its primary listing and the immediate likeliness of fintech affiliate Ant Group's initial public offering.
Price Action: TCEHY shares traded lower by 0.33% at $38.31 in the premarket on the last check Tuesday.