On the evening of January 10, $TENCENT (00700.HK)$ According to the disclosure, 4.01 million shares were repurchased on the same day. The repurchase price ranged from HK$370.2 per share to HK$379.2 per share, and the repurchase amount was HK$1.5 billion on the same day.

Since the US Department of Defense added Tencent and many other companies to the 1260H list (that is, the Chinese military enterprise list), Tencent's single-day repurchase amount has directly doubled month-on-month. From January 7 to January 10, it has taken a single-day repurchase of HK$1.5 billion for four consecutive days, directly doubling the single-day repurchase of HK$0.7 billion from January 2 to 6.

It is worth mentioning that on January 8, the Office of the United States Trade Representative (USTR) released the so-called “2024 List of Notorious Markets for Counterfeiting and Piracy”. Tencent WeChat was removed from the list for the first time. Tencent WeChat was added to the list twice in 2022 and 2023, but it was removed for the first time this year.

As of January 10, Tencent closed HK$369.6 per share, with a total market capitalization of HK$3.41 trillion.

Whether Tencent is worth investing in right now, investment boss Duan Yongping revealed information: he bought Tencent, and he also bought Maotai.

Reproduce major buybacks

On January 10, Tencent issued an announcement. On the same day, the company repurchased 4.01 million shares with a repurchase amount of HK$1.501 billion.

According to the repurchase authorization resolution, the total number of shares Tencent can repurchase is 0.942 billion shares, and 0.251 billion shares have been repurchased.

Looking at the repurchase amount and repurchase amount, for 4 consecutive trading days from January 7 to January 10, Tencent's average daily repurchase amount reached HK$1.5 billion. This doubled compared with the single-day repurchase amount in December 2024 and the single-day repurchase amount for the first few trading days in January 2025.

According to the data, on January 2, January 3, and January 6, 2025, Tencent repurchased 1.68 million shares, 1.69 million shares, and 1.71 million shares respectively. The repurchase amount on the same day was HK$0.701 billion.

On January 6, local time, the US revealed that Tencent,$Contemporary Amperex Technology (300750.SZ)$Many other companies have been included in the 1260H list. This is also the first time that Tencent has been included in the above list.

On the morning of January 7, Tencent responded, “Tencent's inclusion in this list is clearly a mistake. We are not a military enterprise or military supplier. Unlike export controls or anything else, this list has no impact on our business. Despite this, we will continue to work with the relevant US authorities to resolve the misunderstanding.”

Although it had no impact on the business, it caused a shock in the stock market. On January 6, Tencent closed at HK$409.4/share. On January 7, Tencent closed HK$379.600, down 7.28%

To boost confidence, on January 7, Tencent spent HK$1.5 billion to repurchase 3.93 million shares, an increase of 114% over the previous day's repurchase amount of HK$0.701 billion on January 6.

After January 7, January 8, January 9, and January 10, Tencent adopted similar repurchase efforts for 4 consecutive days, and the daily repurchase amount reached HK$1.5 billion. As of January 10, Tencent's total repurchase amount reached HK$8.106 billion.

It is worth mentioning that Tencent disclosed that the company made a total of 129 transactions and repurchased 0.307 billion shares throughout 2024. The total repurchase amount reached HK$112 billion, with an average daily repurchase amount of HK$0.868 billion.

Meanwhile, Tencent made a major repurchase last year, reducing the holdings reduction of its majority shareholder Prosus. According to data, starting with the sale of Tencent shares by Prosus, the majority shareholder of Tencent in June 2022, as of December 27, 2024, Tencent's total repurchases have reached HK$187.6 billion, surpassing Prosus's share sales amount of HK$174.5 billion during the same period.

Duan Yongping added a position to Tencent

While Tencent is buying back shares, it is also cashing out from the two companies it invests in.

On January 9, Hong Kong Stock Exchange documents showed that$TENCENT (00700.HK)$in$WEIMOB INC (02013.HK)$The shareholding ratio fell from 8.39% to 2.94%; in$UBTECH ROBOTICS (09880.HK)$The shareholding ratio was reduced from 8.05% to 2.08%.

Regarding matters such as the recent reduction in WeMeng's holdings and Preferred Choice, Tencent responded to a Chinese brokerage reporter saying, “We will actively review our investment portfolio and evaluate potential adjustments, and use the funds for shareholder returns or new investment projects.”

Although Tencent was influenced by inclusion in the US Department of Defense's 1260H list, on January 8, Tencent received good news from the US side that the Office of the United States Trade Representative (USTR) issued the so-called “2024 List of Notorious Markets for Counterfeiting and Piracy”. Tencent WeChat was removed from the list for the first time.

According to the US side, the list is aimed at exposing online and physical market actors that allegedly promote large-scale piracy and trademark counterfeiting.

Tencent WeChat was listed twice in 2022 and 2023, but was removed for the first time this year. Tencent has strongly opposed being included in the list and emphasized to the Office of the United States Trade Representative that Tencent has long been a global leader in supporting the improvement of the intellectual property system, invested heavily in intellectual property, and cooperated globally to promote intellectual property protection.

According to the US Department of Defense's recent inclusion of Tencent in the “Restricted Purchase List” (CMC List), it can be seen that various departments of the US government have acted differently. Unlike the CMC list, which only restricts listed companies from carrying out procurement transactions with the Department of Defense and its suppliers, the “Notorious Markets List” is issued by the US President's Office and is more comprehensive in trade targeting.

Relevant analysts believe that this is good news for Tencent. “It shows that there are inconsistencies in the US government's attitude towards Tencent, and it is currently not a systematic unified action.”

It is worth mentioning that on January 9, well-known investor Duan Yongping stated on the Snowball account “Dao Invisible and Stylish” website: “I bought Tencent today, and I also bought Maotai.”

Duan Yongping was a well-known entrepreneur in the early days. He founded brands such as “Little Overlord” and “Backgammon,” and he is behind OPPO and VIVO. Subsequently, Duan Yongping also became famous in the investment community. He has held heavy positions in Apple, Maotai, and Tencent, and has held it ever since.

On January 5 of this year, Duan Yongping returned to his alma mater Zhejiang University to meet and exchange with teachers and students. He mentioned companies such as Tencent and Maotai.

“If you happen to have a chance to join a good company you like, I think it's also a great choice, because I've seen that even when the economy isn't that good, good companies have a pretty good life. For example, Tencent and Maotai, like our company, are actually quite good. The drop in Maotai's price does not mean that the company is in bad shape; in fact, it is very good. I actually still can't buy alcohol. We have channels to buy their alcohol, and the amount given is very small.” Duan Yongping said.

Edit/danial