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Prosus has sold its entire stake in Chinese online travel agency Trip.com for $743 million, marking another exit by an international investor from a Chinese tech firm. Walmart also recently sold its JD.com stake for $3.6 billion.
The Chinese government has been cracking down on what they view as consumer excess, coupled with their complete overreach during Covid has resulted in deflationary pressures and a real estate crisis. Hence the recent stimulus efforts by the Politburo to curb the exodus.
Prosus and Naspers have also been reducing their stake in Tencent and using the money to buy back their own shares. So far, this has been a net positive. Maybe it would be better for the cash to be paid back to shareholders though?
