TikTok Rival Kuaishou's Stock Tumbles After Tencent Cuts Stake

TikTok rival Kuaishou Technology’s stock tumbled in Hong Kong after Tencent cut its stake, a move that weakened investor sentiment. Tencent sold more than 270 million Kuaishou Class B shares—about 40% of its holding—through an off-market block trade to independent third parties, according to a Monday exchange filing. The disposal reduced Tencent’s shareholding in Kuaishou to 9.37% from about 15.68%, ending its status as a substantial shareholder. Kuaishou said Tencent’s sale is unlikely to harm operations, noting Tencent remains confident and will maintain a mutually beneficial relationship. Shares fell 12% Tuesday, on track for the biggest daily percentage drop since late March. The shift comes as Kuaishou restructures its AI video unit, Kling, potentially via a spin-off and Hong Kong listing, after Kling’s last funding valued it at $18 billion, with Tencent as an investor. Citi called the sale a surprise and flagged possible further selling.