Tencent (china) to offload more stakes in SE ADR?

Ticker: SE UN (ADR) later but we got to talk about Tencent first to get the picture. Tencent (0700.HK) just reported their earnings (2Q2026) this week. As expected revenue growth was just okay up 11% (YoY) and up 4.2% sequentially (QoQ) As a tech giant (comparable to the US hyper scaler), the common topics that get focused on during earnings call these days are CAPEX number and Free Cashflow. **Numbers:** 2Q2026 Total Capex was 52.8billion (RMB) up 176% YoY and +65% QoQ. Free Cashflow goes to negative 13.8billion (RMB) in 2Q2026 So either they continue with that spending rate or shift elsewhere in this AI race. [https://static.www.tencent.com/website-2026-upload/2Q26-earnings-PPT\_20260812\_1800-88b183.pdf](https://static.www.tencent.com/website-2026-upload/2Q26-earnings-PPT_20260812_1800-88b183.pdf) ***To stay in the AI race:*** You can borrow via bond issuance or equity placement like what (Intel just did)or divesting assets. So the path that Tencent will take are (most likely): 1) leverage up with some bond issuance in HKD or RMB. 2) Divestment of their assets (so that brings me to their investment in listed/unlisted companies) **Divestment in 2026 (YTD) news:** [https://www.businesstimes.com.sg/companies-markets/tencent-talks-offload-marvelous-and-other-global-game-bets](https://www.businesstimes.com.sg/companies-markets/tencent-talks-offload-marvelous-and-other-global-game-bets) [https://www.reuters.com/world/asia-pacific/tencent-unit-seeks-up-155-billion-kuaishou-share-sale-term-sheet-shows-2026-07-06/](https://www.reuters.com/world/asia-pacific/tencent-unit-seeks-up-155-billion-kuaishou-share-sale-term-sheet-shows-2026-07-06/) In July, they pared down their stakes in a HK company at a very depress price level. But they need the cash, so it must go on. **Triangulating onto SE:** The last time Tencent sold stakes in SE (Sea Limited ADR) shares was back in early 2022. Before the Fed went on hiking cycle and tanked the share price. [https://www.straitstimes.com/business/companies-markets/tencent-plans-to-sell-a-stake-in-singapores-sea-for-up-to-4-billion](https://www.straitstimes.com/business/companies-markets/tencent-plans-to-sell-a-stake-in-singapores-sea-for-up-to-4-billion) It has been awhile since that last offload (4 years+ back) and Tencent now needs to fund it's AI Capex more than ever. Which is the obvious part. Based on reported numbers, Tencent still holds a 16% stake in Sea Limited ADR. There's room to bring that number down and re-allocate capital for their AI and Agentic AI. Sea Limited also just reported earnings this week, so the play here is simple. If Tencent wants to offload like a 5% stake figure then it will be at a discount to the last traded price just to get the buyers in Which creates selling pressure in anticipation.