AsianFin -- Tencent Holdings Ltd. executed its largest share buyback in nearly two decades after its inclusion on a U.S. blacklist for alleged ties to the Chinese military triggered a stock selloff.
On Tuesday, Tencent repurchased 3.93 million shares listed in Hong Kong, marking the biggest buyback since April 2006, according to data compiled by Bloomberg. Despite the social media giant’s denial of the allegations, the stock fell 7.3% that day. Tencent has vowed to cooperate with the U.S. Department of Defense to resolve any misunderstandings.
The HK$1.5 billion ($193 million) buyback is part of Tencent's broader efforts to boost shareholder returns, but it also highlights the urgency of mitigating the impact from the blacklist. Tencent wasn’t the only entity purchasing shares during the selloff—investors from mainland China bought HK$14 billion worth of Tencent stock via Hong Kong exchange links on Tuesday, making it the day’s most-purchased stock.
Explore more exclusive insights at nextfin.ai.
