Chinese tech group Tencent on Wednesday said it would “distribute” the majority of its $22bn stake in Meituan, a food delivery company, in dividend, as it works to reduce its holdings in the country’s tech sector.Tencent’s quarterly revenue fell for a second quarter, underscoring the toll of Beijing’s bruising regulatory crackdown on the country’s internet sector and the impact of slowing economic growth in the world’s second-largest economy.

The tech group posted quarterly revenue of Rmb140bn ($19.7bn) in the three months ending September 30, down 2 per cent from the same period last year and slightly missing analyst forecasts of Rmb141.4bn. Tencent’s net profit increased by 2 per cent to Rmb32.3bn.

“Our resilient businesses, diversified cash flows, sizeable cash balance and substantial investment portfolio enable us to invest in strategic growth areas and innovation, while at the same time returning capital to shareholders,” said Pony Ma, Tencent’s chair, on Wednesday.