On August 24, TENCENT fell 3.06% in regular trading, trading at HK$442.8/share, with turnover of HK$2.398 billion.

On the news front, Alibaba announced a placement of 710 million new shares at HK$112.70 per share, raising approximately HK$80 billion for AI infrastructure investment. The placement price represents an approximately 8.4% discount to the previous trading day close, sending Alibaba shares down over 8% at open and dragging the broader internet technology sector sharply lower.

For TENCENT specifically, the stock was already under pressure after multiple brokerages cut target prices following its Q2 results, citing accelerated AI investment that turned free cash flow negative. Haitong International lowered its target price to HK$480, while Daiwa reduced its target to HK$660. The company reported Q2 capital expenditure of RMB52.8 billion, surging 176% year-over-year as it aggressively scaled AI compute procurement. Despite core business profitability remaining strong with adjusted operating profit growing 19% excluding new AI products, the near-term cash flow impact from heavy AI spending continues to weigh on sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)