The video game and social media company Tencent will pay a dividend of $ 16.4 billion, distributing the majority of its stake in JD.com to its shareholders.
This weakens the Wechat owner’s ties to the e-commerce company and raises questions about his plans for other businesses.
The decision comes as Beijing carries on a wave of regulatory pressure against technology companies, limiting its growth ambitions abroad and the domestic concentration of market power.
Tencent said Thursday that it will transfer $ 16.37 billion of its stake in JD.com to shareholders, reducing its stake in China’s second-largest e-commerce company to 2.3 percent from around 17 percent today.
The Wechat owner, who first invested in JD.com in 2014, said the time is right to divest as the firm has reached a stage where it can self-finance its growth.