Tencent's publishing arm reads good potential in HK listing

Tencent Holdings Ltd's online publishing arm, China Literature Ltd, has filed pre-listing documents with bourse operator Hong Kong Exchanges and Clearing Limited, for a floatation that would raise funds for potential acquisitions and expand its mobile reading business.

The move underpins how Asia's most valued tech firm is using the burgeoning digital reading business to create synergies with its most profitable gaming segment, in a bid to grow the company into a full-fledged internet entertainment conglomerate, analysts said.

According to a prospectus lodged with the Hong Kong bourse late Monday, the country's biggest e-book company is being spun off from Tencent, which currently owns around 65 percent of the business.