Tencent Cuts Stake In This Chinese Edtech Firm

• Tencent Holding Ltd (OTC: TCEHY) slashed its stake in Koolearn Technology Hldg Ltd (OTC: KLTHF) to 1.6% from 9%, Bloomberg reports.

• The Chinese education technology firm's shares surged 684% in just nine trading sessions through June 16, basking on the live-streaming e-commerce frenzy before Beijing's tech crackdown.

• An analyst expressed doubts over the sustainability of the business crediting most of the rally to the retail investors.

• Also Read: China Continues Its Crackdown, Penalizes Social Media Influencer $16M For Tax Evasion

• Some analysts view Tencent's move as a shift to lower exposure in areas subject to Beijing's regulatory clampdown.

• China reportedly called on live-streaming platforms to share more profits with peasants.

• China's intense crackdown on the sector affected the quarterly results of HUYA Inc (NYSE: HUYA) and DouYu International Holdings Limited (NASDAQ: DOYU), leading to the scaling back of jobs.

• However, lately, JD.com, Inc (NASDAQ: JD) Retail chief Xin Lijun acknowledged some stability in the regulatory environment.

• Price Action: TCEHY shares closed at $46.73 on Friday.

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