Tencent (0700) has named a new subsidiary after itself and Japan's Nintendo.
Taking the first consonant from the two companies, the new firm is expected to cash in on Nintendo's Switch console launch in China. With registered capital of three million yuan (HK$3.31 billion), the firm, 100 percent held by Tencent, will be involved in the design and sales of toys and digital products.
The mainland tech giant announced in April it would cooperate with Nintendo, saying it will help in the Switch launch in China. Switch in China will introduce popular games like The Legend of Zelda: Breath of the Wild. All related products and services will be provided by Tencent.
The news come as Tencent said it bought back 110,000 shares on September 9 for HK$37.62 million at prices between HK$340.80 and HK$343.40.