Kuaishou shares tumble as Tencent slashes stake after US$3b Kling AI deal

Shares of Kuaishou Technology fell more than 6 per cent on Tuesday morning after Tencent Holdings slashed its stake in the short-video platform by selling 273 million Class B shares, just days after leading a US$3 billion financing round for Kuaishou’s Artificial Intelligence video unit, Kling AI.The divestment will reduce Tencent’s shareholding in Kuaishou to 9.37 per cent from 15.68 per cent, meaning the tech giant would cease to be a substantial shareholder, according to a Kuaishou filing to the Hong Kong stock exchange on Monday.The filing did not disclose the transaction price or range, but based on Kuaishou’s closing price of HK$46 on Monday, Tencent is expected to raise HK$12.56 billion (US$1.6 billion) from the sale.