Tencent pumps US$114m in Shimao Property arm

Tencent (0700) invested US$114 million (HK$889.2 million) in the property management arm of Shimao Property (0813) before its listing, the developer announced last night.

Shimao Property announced last month that it is considering a spinoff of Shimao Services in Hong Kong, without declaring details. The property manager also received US$130 million investment from venture capital fund Sequoia Capital China.

Tencent will capitalize on its platform that integrates both online and offline sectors and plans to support a business ecosystem that foster a digital upgrade at Shimao Services, Shimao Property said. Sequoia Capital will support Shimao Services in accessing community business resources as well as facilitating a refinement of the company's operating efficiency and management capabilities, it said.

Tencent at one point rose 0.23 percent to HK$430.6, hitting the highest in more than two years, with HK$14.34 billion worth of shares traded.

That came as the tech giant posted a better-than-expected first-quarter net profit, driven by rising online gaming profits amid the Covid-19 lockdown. Major investment houses including HSBC, Citibank, and UBS raised their target price for Tencent.

The growth helped Tencent's market capitalization rise to HK$4.11 trillion, narrowly behind Alibaba's (9988) HK$4.17 trillion.