Scottish Mortgage sells out of Tencent as Chinese investments become more selective

Preliminary results

Scottish Mortgage investment trust has sold out of long-term holding Tencent after 16 years.

In the company's annual results for the year to 31 March 2024, SMT revealed it had parted ways with the Chinese mobile platform over concerns the country's ongoing political and regulatory developments could stifle growth. Scottish Mortgage returns to TSMC for the first time in a decade "The constraints that go with scale for Chinese businesses have increased substantially," said lead manager Tom Slater. "As a result, it will be difficult for Tencent to meet our more demanding inclusion criteria over the coming years," Slater said, parting ways with the firm despite having a "massi...