For Tencent announced "dividend reduction" JINGdong, the godfather of investment Duan Yongping agreed.
On December 24, Duan Yongping said through his snowball account "Daobiji I Youxing" that Tencent's "dividend reduction" in JD can effectively avoid the suspicion of monopoly, compared with direct sales of JD shares, to minimize the impact of the market.
Tencent Holdings LTD (0700.HK) declared an interim dividend in the form of a physical allotment of jd Group shares (9618.HK) in the Hong Kong stock Exchange on December 23 morning. Tencent holdings will reduce its stake in JD.com from 17 percent to 2.3 percent after the distribution, and will no longer be jd.com's largest shareholder. Martin Lau, president of Tencent, will also step down from jd.com's board.
Shortly after Tencent's announcement, Duan Yongping commented that the feeling is not a bad thing, "Tencent's ownership of JD.com is directly distributed to shareholders... That might be better than outright sales of Tencent's holdings. If this goes well, Tencent may continue to do so?"
Tencent has invested in many companies over the years and has had many successful cases, duan said, adding that giving jd.com shares is a good way to reward shareholders. "At least the company doesn't have to decide if to sell and when... I will vote yes, even though it doesn't seem to require a shareholder vote."
Duan yongping has publicly expressed his interest in Tencent many times.
On August 4 this year, Duan Yongping wrote that he wanted to "catch the bottom" of Tencent: "I bought some Tencent stocks today, and I will buy more if they fall." At the time, Tencent's shares were trading at about HK $440, down more than 40% from a high of HK $775 earlier this year.
In early December 2020, Duan yongping wrote that Tencent's "adjustment" gave me an opportunity to buy Tencent. In 2019, he wrote that he thought Tencent could make 200 to 300 billion yuan a year in 10 to 15 years, and how much money he was willing to pay for the company depended on his opportunity cost.
Tencent Holdings (0700.HK) closed at HK $460.2, down 0.35%. Jd.com (9618.HK) rose 0.62% to HK $261.2.