FirstFT: Tech titan Tencent pivots from investment buyer to seller

Good morning. Chinese Internet giant Tencent is shifting its focus from years of aggressive stock-building to diversification after pressure from investors and Beijing’s recent crackdown on Big Tech.

As part of a major shift in strategy, the company has unveiled a soft target to divest about Rmb100bn ($14.5bn) from its $88bn listed equity portfolio this year, two people familiar with the matter said.

Partial transfers were in the pipeline at large Chinese companies such as catering service Meituan, the people said. Tencent owns more than 10 percent of China’s six largest tech companies and is the largest investor in Meituan, short video sharing app Kuaishou and popular Q&A site Zhihu. Cutting the stake would help ease pressure on Tencent from China’s anti-monopoly regulator, the people said.

Beijing’s tech offensive has brought nearly 100 deals involving Alibaba and Tencent under antitrust scrutiny, changing the authorities’ once laissez-faire approach to the country’s vast internet sector.

With China’s zero-covid policies and the property crisis battering the economy, investors have pressured the company to divest underperforming assets. Tencent reported its first quarterly earnings decline in August, marking a rebound from a day of double-digit growth.

FirstFT Europe/Africa — Thank you for reading Gary

Five more stories in the news

1. The pound posted its worst month since the Brexit referendum In the year Sterling posted its biggest monthly decline against the dollar since October 2016, falling 4.5 percent to $1.16 in August amid a worsening outlook for Britain’s economy, an energy crisis and political uncertainty. The pound is down about 3 percent against the euro.

2. Truss imposes new taxes Conservative leadership frontbencher Liz Truss vowed not to introduce new taxes as prime minister at the party’s 12th and final conference yesterday. If elected, she said she would rather cut taxes than introduce a “handout” to tackle the cost of living.

3. The European Union tore up the visa agreement with Russia The EU has agreed to end Ukraine’s visa deal with Moscow, punishing ordinary travelers as a result of Vladimir Putin’s invasion.

4. Binance expands free trading to include Ether The world’s largest cryptocurrency exchange is stepping up efforts to protect market share and lure back customers following this year’s market crash, with transactions taking place in ether – the second largest digital token – before upgrading to the ethereum blockchain. The famous sign is registered.

5. As growth slows, China’s carbon emissions fall Carbon emissions in China fell by about 8 percent in the April to June quarter. .

The future date

Economic data S&P Global released manufacturing purchasing managers’ indices for the EU, Germany, Italy, France, Spain, the UK and the US for August. July unemployment data is out for the Eurozone and Italy, which also has a second quarter GDP growth. Germany publishes July retail sales. The U.S. has July construction spending and weekly jobless claims, while the UK has released its August housing survey.

European Medicines Agency meeting The regulator will review Moderna and BioNTech/Pfizer incentives tailored to target the Omicron variant. The US approved Omron-based vaccines yesterday.

Corporate income Athletic apparel retailer Lululemon, US semiconductor maker Broadcom, food processor Hormel Foods and beverage giant Pernod Ricard report results.

Schools are back Most British schools return after the summer holidays. In China, Shanghai reopens all schools after months of Covid-19 shutdown.

Biden to condemn ‘radical’ Republicans In a speech from Philadelphia tonight, US President Joe Biden will describe the Republican Party as extremist, hypocritical and captive to the influence of Donald Trump ahead of November’s midterm elections.

The European Premier League transfer window is closed Chelsea have spent more than £200mn on six confirmed signings as the transfer window officially closes today. Premium subscribers can. Click here Sign up for Scoreboard, our sports business newsletter.

What else are we reading?

What are the EU’s options for limiting electricity prices? As European Commission President Ursula von der Leyen examines gas prices and the reform of energy markets, the Financial Times answers key questions about Europe’s energy crisis, explains how the market works, why prices are so expensive and what the EU can do to cut back. Costs – as well as risks.

The ‘don’t pay’ power bill protest gathers steam As fears grow about Britain’s energy crisis – with a public health expert warning of a “humanitarian crisis” for children suffering from respiratory problems in cold, damp homes – grassroots movement Don’t Pay has raised 1 million people to cancel their debt. Energy bills on October 1.

How Dana White made the UFC Over the past two decades, Dana White has built the Ultimate Fighting Championship into a $4 billion company that generated more than $1 billion in revenue last year. The foul-mouthed, art-loving non-violent protester used insults in press conferences, threatening enemies and publicly tearing down the weaknesses of the workers and fighters.

Self-driving cars have nothing on Japan’s self-driving ships The global race to perfect fully autonomous operations for large merchant ships is fierce, and has far more practical implications than self-driving cars, writes Leo Lewis.

Why mental humility is important. Intellectual humility can be thought of as a willingness to be aware of our own cognitive limitations and biases, and to be more interested in understanding the truth of an issue. This lack leads some people to believe in conspiracy theories and fake news stories, writes Jemima Kelly.

Movie

79th Venice Film Festival opens with Adam Driver and Greta Gerwig White noisedirector Noah Baumbach’s adaptation of Don DeLillo’s novel and Kanye’s take on the post-Covid “airborne toxic phenomenon.”