On the evening of July 6th, Kuaishou-W (HKEX: 01024) issued a voluntary announcement on the Hong Kong Stock Exchange confirming a share sale by TENCENT (HKEX: 00700), stating the move would not have any significant adverse effect on its operations.

The announcement confirmed that after the market close on July 6th, Tencent sold a total of 272,947,700 Class B shares via an off-exchange block trade to several independent third-party buyers unconnected to Kuaishou or its associates. Following this transaction, Tencent's shareholding will decrease from approximately 15.68% to 9.37%, and it will cease to be a major shareholder of the company.

In the statement, Kuaishou noted that Tencent expressed confidence in the long-term growth prospects of the group and that both parties would continue their mutually beneficial relationship, including maintaining their strategic cooperation. Kuaishou expects the share sale will not have any material negative impact on its business operations.

Prior to the official announcement, foreign media reports had indicated that Tencent Mobility, a subsidiary of Tencent, planned to sell approximately 273 million Kuaishou shares via block trade at a price range of HK$43.15 to HK$44.53, representing a discount of up to 6% from Monday's closing price of HK$46, potentially raising up to HK$12.157 billion.

According to the announcement, Tencent reduced its stake by 6.31%. Based on Kuaishou's total market capitalization of approximately HK$199 billion at the close on July 6th, the scale of the divestment amounts to around HK$12.5569 billion.

Kuaishou's annual report shows that as of December 31, 2025, Tencent Holdings, through Tencent Mobility, held 506 million shares, representing 11.72% of the total share capital. Including other holding platforms, Tencent's total holding was approximately 678 million shares, or 15.7% of the issued share capital. Based on Kuaishou's latest closing price of HK$46, the value of this holding was approximately HK$31.2 billion.

As of the close on July 6th, Kuaishou's share price has plummeted 26.83% year-to-date, more than halving from its intra-year high of HK$85.2 per share. This has raised market questions about the timing of the divestment. Some market observers view this as part of Tencent's ongoing efforts to optimise its investment portfolio, with the AI era becoming a new direction for its capital reallocation.

On July 6th, Kuaishou's Hong Kong-listed shares surged 7.98% to close at HK$46 per share. However, its American Depositary Receipts (ADRs) closed down 7.92% in US trading on the same day.

Kuaishou-W's first-quarter 2026 financial report showed revenue of RMB 33.716 billion, a year-on-year increase of 3.4%. The gross profit margin was 51.2%, down 3.4 percentage points from the previous year. Adjusted net profit was RMB 3.374 billion, a decrease of 26.3% year-on-year.

On July 2nd, it was reported that Kuaishou's video generation large model, Kling AI, secured nearly $3 billion in funding, with a post-money valuation potentially reaching $18 billion. This funding round set a record for the largest single fundraising by a global video large model company, marking the official commencement of its independent commercialisation journey.

It is understood that this funding round was jointly led by CPE Yuanfeng, Guofang Chuangtou, BlueFive, Tencent, Zhongguancun Science City Fund (in conjunction with Guoke Investment), and CITIC Securities, with participation from dozens of other leading institutions. The round reportedly attracted top-tier industrial capital from entities like Alibaba Cloud and Baidu, with active involvement from major entertainment industry players such as Huace Film & TV and Mango Industry Investor (Houwei Capital).