Shares of Chinese food delivery giant Meituan plunged 9% on Tuesday after Reuters reported Tencent is planning to sell the majority of its $24 billion stake in the company.
Tencent, which owns 17% of Meituan, is planning to placate domestic regulators and cash in on its eight-year-old investment, Reuters reported, citing four sources with knowledge of the matter.
A Tencent spokesperson said it does “not comment on market speculation” when contacted by CNBC. Meituan was not immediately available for comment.
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