Tencent said to plan to sell majority of its $24 billion stake in Meituan (update)
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Update 10:55am: Adds another China publication denying the story.

Tencent (OTCPK:TCEHY) is said to plan to sell all or most of its 17% stake in Chinese food delivery company Meituan (OTCPK:MPNGF) as it tries to appease Chinese regulators. Meituan dropped 7%.

Tencent has hired financial advisers in recent months to look at ways to sell the 17% stake in Meituan (OTCPK:MPNGF) that's valued at about $24 billion, according to a Reuters report. Tencent (OTCPK:TCEHY) wants to kick off the sale this year if conditions are favorable.
Tencent doesn't plan to sell its stake in Meituan, 36Kr reported Tuesday, citing a source close to the Chinese tech giant.
The move to potentially sell its stake in Meituan (OTCPK:MPNGF) come as Tencent has also been selling down stakes in other companies including JD.com (JD) and SEA Ltd. (SE). Sea slumped 11% in trading on Tuesday, while JD fell almost 1%.

Meituan (OTCPK:MPNGF) has been a target for Chinese regulators and the food delivery company was fined $533M for allegedly violating anti-monopoly laws in October.

Other Chinese names where Tencent (OTCPK:TCEHY) owns a stake also appeared to fall in sympathy on the Reuters news. Bilibili (BILI) ADRs dropped 2.5% in premarket trading and Pinduoduo
(PDD) slipped 1.8%.