(Yicai Global) Dec. 23 -- JD.Com's Hong Kong-listed shares closed at a four-month low after Tencent Holdings unveiled a surprise plan to distribute HKD127.7 billion (USD16.4 billion) of JD’s shares among its investors in the form of a dividend, a decision that will loosen its ties with the Chinese e-commerce giant.

JD.Com [HKG: 9618] fell 7 percent today to HKD259.60 (USD33.29), the lowest closing price since Aug. 23. In pre-market trading in New York, its stock [NYSE: JD] was down 8.3 percent to USD67.60 as of 4.53 a.m. local time.

Tencent will offload 457.3 million JD shares, about 84.6 percent of its stake in the company, the Shenzhen-based gaming and social media firm said in a statement today. Tencent’s stake will drop to 2.3 percent from 17 percent, meaning it will no longer be JD’s largest single shareholder. Furthermore, Tencent President Liu Chiping will leave JD’s board, it added.

Eligible Tencent stockholders will receive one JD share for every 21 Tencent shares they own. Those not eligible will receive cash instead. The dividend will be paid based on JD’s closing price of HKD279.20 yesterday.

Tencent said it has no plan to further cut its stake in JD, adding that it is still JD’s strategic partner and is confident about the Beijing-based company’s prospects. Their win-win business relationship will not change, Tencent said.

Tencent’s stock price [HKG: 0700] jumped 4.2 percent to close at HKD461.80.

Tencent’s investment strategy is to get into growth companies at their development stage, The Paper reported today, citing the firm. Tencent will choose a proper time to withdraw from such investments when they can raise money by themselves, it said, noting that its long-term investment strategy has never changed.

Tencent first invested in JD and folded its e-commerce business into the company in March 2014. It also participated in JD’s initial public offering.

Editor: Futura Costaglione, Xiao Yi