--- title: "Investing in others is not as good as buying your own? Tencent reduces holdings in Weimob and UBTECH, increases buyback efforts" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/26574835.md" description: "$TENCENT(00700.HK) $WEIMOB INC(02013.HK) $UBTECH ROBOTICS(09880.HK) Industry insiders believe this may reflect a shift in the company management's thinking. Is investing in others worse than buying your own? Tencent Holdings (00700.HK) recently significantly reduced its holdings in Weimob Group (02013.HK) and UBTECH (09880.HK). After the reduction, Tencent's stake in both companies fell below 3%. From January 7 to January 10, Tencent repurchased approximately HKD 1.5 billion for four consecutive days, and before January 6..." datetime: "2025-01-13T02:26:33.000Z" locales: - [en](https://longbridge.com/en/topics/26574835.md) - [zh-CN](https://longbridge.com/zh-CN/topics/26574835.md) - [zh-HK](https://longbridge.com/zh-HK/topics/26574835.md) author: "[老顽童投资漫谈](https://longbridge.com/en/profiles/13632881.md)" --- # Investing in others is not as good as buying your own? Tencent reduces holdings in Weimob and UBTECH, increases buyback efforts $TENCENT(00700.HK) $WEIMOB INC(02013.HK) $UBTECH ROBOTICS(09880.HK) Industry insiders believe this may reflect a shift in the company's management thinking. Investing in others is not as good as buying your own? Tencent Holdings (00700.HK) recently significantly reduced its stakes in Weimob Group (02013.HK) and UBTECH (09880.HK). After the reduction, Tencent's shareholding in both companies fell below 3%. From January 7 to January 10, Tencent repurchased approximately HKD 1.5 billion for four consecutive days, while before January 6, the daily repurchase amount was only around HKD 700 million. In this regard, industry insiders believe that Tencent is realizing capital by selling non-core assets while increasing efforts to repurchase its own shares, demonstrating the company's confidence in future development and the view that the current stock price is undervalued. The company may also hope to accelerate the achievement of its long-term strategic goals, such as promoting digital transformation and expanding into new business areas. Reducing stakes in Weimob and UBTECH Hong Kong Stock Exchange disclosure data shows that on January 3 and January 6, 2025, Tencent sold a total of 184 million shares of Weimob Group, reducing its shareholding from 8.39% to less than 3%. After the reduction, Tencent holds 99.17 million shares of Weimob Group. On January 3 and January 7, Tencent reduced its stake in UBTECH, lowering its shareholding from 8.05% to 2.08%, with the number of shares held reduced to 6.6186 million. Tencent cashed out approximately HKD 630 million from the reduction in Weimob Group and about HKD 1.03 billion from the reduction in UBTECH. Tencent stated, "We actively review our investment portfolio and evaluate potential adjustments to allocate funds for shareholder returns or new investment projects." Weimob Group announced that the company and Tencent will continue to maintain a mutually beneficial commercial cooperation relationship, continuing to serve as a service provider for WeChat Stores, Mini Programs, and Tencent Ads, offering high-quality SaaS products and precision marketing services to merchants within the Tencent ecosystem to promote business growth. On January 10, Weimob Group closed down more than 40% at HKD 1.88 per share; UBTECH closed down more than 10% at HKD 46.25 per share. Yu Feng Hui, an advisor to the Hong Kong Stock 100 Research Center and an economist, told First Financial that Tencent's reduction can be seen as a capital allocation strategy, realizing funds by selling non-core assets and concentrating resources on its core business and strategic investments. This indicates that Tencent may be reassessing its investment portfolio, reducing its stake in certain companies to better optimize its financial structure and resource allocation. At the end of 2021, Tencent reduced its stake in JD.com after holding it for eight years, lowering its shareholding from 16.9% to 2.2%. At the time, JD.com shares worth approximately USD 16.4 billion were distributed to Tencent's shareholders as dividends. In November 2022, Tencent disclosed a reduction in its stake in Meituan, lowering its shareholding from about 17% to 1.5%, distributing 958 million Meituan Class B shares as a special interim dividend. In the view of some Hong Kong stock investors, Tencent's reduction and repurchase actions may reflect a comprehensive shift in the management's overall thinking. On January 3, Tencent announced that it repurchased 307 million shares throughout 2024, totaling HKD 112 billion. On January 6, the U.S. Department of Defense listed Tencent, CATL, and other Chinese tech companies on the Chinese Military-Industrial Enterprise List. On January 7, Tencent announced that it is not a Chinese military-industrial enterprise or a civil-military integration enterprise of China's defense industry, and the U.S. inclusion is erroneous. The listing will not affect any business dealings outside the U.S. Department of Defense, including securities trading. Tencent intends to initiate a review process to correct this error. During this process, Tencent will discuss with the U.S. Department of Defense to resolve any misunderstandings and, if necessary, take legal action to remove Tencent from the Chinese Military-Industrial Enterprise List. From January 7 to January 10, Tencent repurchased approximately HKD 1.5 billion daily for four consecutive days, while before January 6, the daily repurchase amount was only around HKD 700 million. Over the past week, Tencent's repurchase efforts have significantly increased. Yu Feng Hui stated that Tencent's large-scale repurchase of its own shares demonstrates confidence in the company's future development and the view that the current stock price is undervalued. Repurchases can not only enhance shareholder value but also boost market confidence, sending positive signals to investors. Additionally, this may be to address potential market volatility and protect the company from external economic uncertainties. Overall, Tencent's strategic adjustment reflects its transition from a diversified investment group to a more focused enterprise on core competitiveness. This shift may lead Tencent to emphasize internal innovation, technological development, and service quality in the future to maintain its leading position in China and the global internet industry. At the same time, Tencent may hope to accelerate the achievement of its long-term strategic goals, such as promoting digital transformation and expanding into new business areas. Tencent's advantage in artificial intelligence lies in its ecosystem and the support of numerous partners, with rich content reserves such as China Literature and Tencent Video Channels. Additionally, cloud computing and platform software technology are Tencent's strengths, from backend technology serving massive users to front-end interaction capabilities and seamless integration into the WeChat ecosystem's production tools. Tencent has extensive technical and experience accumulation. ### Related Stocks - [02013.HK](https://longbridge.com/en/quote/02013.HK.md) - [09880.HK](https://longbridge.com/en/quote/09880.HK.md) - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [80700.HK](https://longbridge.com/en/quote/80700.HK.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [HTCD.SG](https://longbridge.com/en/quote/HTCD.SG.md) ## Comments (1) - **萍股相逢 · 2025-01-13T03:27:54.000Z**: Long-term buying point