Tencent Holdings to hand out $16 bn of JD.com shares as dividend

Tencent's handout may buy goodwill with the government, which has pushed for the dismantling of barriers and for tech firms to share the wealth

Tencent Holdings Ltd. plans to distribute more than $16 billion of JD.com Inc. shares as a one-time dividend, representing a near-retreat from the Chinese e-commerce firm that is stoking concerns it will pull away from other marquee investments.

The surprise move to divest most of its stake in China’s No. 2 online retailer comes as Beijing punishes the country’s tech giants for monopolistic behavior, including maintaining closed ecosystems that favor certain companies at the expense of others.

Tencent’s handout may buy goodwill with the government, which has pushed for the dismantling of barriers and for tech firms to share