(Yicai Global) Aug. 19 -- Internet titan Tencent Holdings will donate another CNY50 billion (USD7.7 billion) to help achieve the goal of “common prosperity,” or material and cultural affluence shared by everyone, that Chinese President Xi Jinping set out earlier this week.

The new special fund Tencent has set up will be used to lift the incomes of low-income groups, help rural revitalization, and boost grassroots healthcare and education, the Shenzhen-based company said in a statement late yesterday.

A day earlier, Xi had stressed the need to promote common prosperity, an essential requirement of socialism and a key feature of Chinese-style modernization, at a meeting of the Central Committee for Financial and Economic Affairs which he chaired.

Tencent had already committed CNY50 billion to “sustainable innovations for social value” back in April. Its latest financial undertaking is an active response to the country’s strategies, the company said yesterday.

The 10th meeting of the Central Committee for Financial and Economic Affairs, held on on Aug. 17, focused on promoting common prosperity in stages. Regarding taxes, the committee plans to increase direct taxes and cut indirect levies, as the actual tax burden on the wealthy is less than that on the poor. Social insurance and redistribution payments were also discussed to address the widening wealth gap.

Tencent also reported its financial results for the second quarter yesterday. Net profit jumped 33 percent to CNY42.6 billion in the three months ended June 30 from a year earlier. Revenue rose 20 percent to CNY138.3 billion (USD21.3 billion).

Editor: Futura Costaglione