SHENZHEN-BASED Tencent Holdings Ltd. has tumbled 13 percent from its September record, wiping US$35 billion off the value of its shares, as overseas funds pulled money from Hong Kong and mainland equities.

    The firm’s large weighting on the Hang Seng Index — at 10 percent — helped make Hong Kong’s benchmark stock gauge one of the world’s worst performers last quarter.

    The company, which has more buy ratings than any other in Hong Kong, is a victim of fund redemption pressures. Investors pulled about US$409 million from exchange-traded funds (ETFs) that buy mainland and Hong Kong stocks in the week through Dec. 21 as concern grew over a weakening yuan and tighter liquidity.

    “If there are fund redemptions, it’s hard to avoid selling Tencent because its weighting is so big,” said Toshihiko Takamoto, a Singapore-based portfolio manager at Asset Management One.

    Tencent’s stock was the second-largest drag on the Hang Seng Index in the fourth quarter, after AIA Group Ltd.

    The selloff hasn’t shaken analysts’ faith in the stock. Tencent has 43 buy ratings, 2 neutral recommendations and zero sells, analysts say. (SD-Agencies)