Stock Alert: Tencent Holdings Ltd

• Gaopeng.com, Groupon’s joint venture with Tencent Holdings Ltd (HKG:0700), which is also backing the project with a private equity fund is reportedly downsizing operations and the number of employees. Click here

• Earlier this month, Tencent Holdings Ltd reported an increase in quarterly profits that fell short of forecasts.

• Short interest in the stock reached unprecedented highs earlier this month at 3.5% of total shares but has now reduced to 3%. Although the stock is not too heavily shorted, this level of short interest can be contrasted to the lows of 1.5% recorded in January.

• Institutional investors who lend have been increasing bullish towards Tencent over the year. Holdings reached an annual high of a tenth of the company before the recent global markets sell-off which saw these investors scale back their stake by 5% in August.