Tencent comany name is displayed at a news conference in Hong Kong, China March 17, 2016. Photo: Reuters/Bobby Yip

Two days day after Chinese Internet giant Tencent announced its most recent performance numbers, its biggest shareholder Naspers said it would sell at least 190 million Tencent shares, equal to 2% of Tencent’s total share capital and cutting its holdings to 31%, Yicai.com reported.

Based on Tencent’s current stock piece, these shares are valued at approximately US$10.6 billion. Tencent closed at HK$439.4 on March 22, down 5% throughout the day.

Analysts are concerned that due to the worse-than-expected performance and news of a major shareholder in a sell-off, it may put continuing pressure on Tencent’s stock price.

However, Huang Wei, economic strategist from Lukfook Financial, said it is normal for a majority shareholder to cash out, and, as long as there is a suitable buyer, such as a large fund, it will not have a great impact on Tencent.

The report also said Naspers will not sell any more Tencent shares for at least the next three years, which is in line with its long-standing position in the company.

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