(Yicai Global) Aug. 24 -- Shares in Tencent Holdings surged today after the Chinese internet giant repurchased HKD280 million (USD36 million) worth of its shares over the last three trading days, demonstrating confidence in the company’s future prospects despite a slew of new regulations aimed at reining in internet-based mammoths.

Tencent's share price [HKG:0700] was trading up 7.51 percent at HKD463.80 (USD 60) at 3 p.m. China time. The stock has lost 40 percent of its value since it hit a record high in January.

Tencent bought back HKD101 million (USD13 million) of its own stock yesterday at a price of between HKD432 (USD55.50) and HKD443.80 per share, the Shenzhen-based firm said. On Aug. 19 and Aug. 20 it repurchased HKD77 million and HKD102 million worth.

Tencent reported a 11 percent drop in net profit in the second quarter from the previous quarter to CNY42.6 billion (USD6.6 billion), according to its latest earnings report released on Aug. 18. It was, however, a 33 percent jump from the year before.

The Chinese government has brought out a slew of new regulations in recent months to bring the sprawling internet-based sector to heel. Data security, copyright infringement, extra-curricular classes and gaming for minors are just some of the areas coming under scrutiny.

Tencent will comply with all regulations and does not expect them to affect its long-term business, it said.

Editor: Kim Taylor