Chinese technology giant Tencent Holdings Ltd. is offloading its stake in JD.com Inc., the country’s second-largest e-commerce company.

Shenzhen-based Tencent will reportedly hand out the 460 million ordinary shares of JD.com worth a reported $16.4 billion to its own shareholders in March, cutting its stake in the firm from 17% to just 2.3%. In addition, Tencent President Martin Lau has also resigned from JD.com’s board of directors, the company said in a statement.

It’s believed the move will help ensure Tencent stays on the right side of Beijing, which has been cracking down on tech giants in an effort to rein in their growing power and influence. In recent months, China has increased scrutiny of the tech industry, published detailed rules aimed at tackling unfair competition, slapped companies with massive fines, and demanded that some firms completely overhaul their businesses.

A source at Tencent reportedly told the Financial Times that the company is keen to demonstrate that it is “not empire building” or “trying to amass influence” and that reducing its stake in JD.com was one way to make that clear.

The company did not want “to be seen to be exerting massive influence over a huge segment of the economy in perpetuity,” the person added.

The move may reduce Tencent’s “dominance” in the market and “is potentially an attempt to shift towards fairer competition, as well as to be more in line with the agenda for China authorities,” Yeap Jun Rong, a market strategist for IG, said in a research note on Thursday.

Before Chinese authorities launched their crackdown, Tencent was one of the country’s most active investors. It nurtured hundreds of tech startups and building a publicly traded investment portfolio that grew to a value of more than $190 billion.

The company also holds a 16% stake in the e-commerce group Pinduoduo Inc., a 17% share in the food delivery giant Meituan Inc. and an 18% share in Kuaishou Technology Co., Ltd., known for its popular video-sharing app. Tencent also holds positions in U.S. firms such as Tesla Inc. and Snap Inc.

Tencent said in Wednesday’s announcement that in the future it could begin to exit some of those positions once portfolio companies have matured and no longer need outside capital.

“The Board believes JD.com has now reached such a status, and therefore considers that it is an appropriate time to transfer the shares,” Tencent said.

The two companies will “continue to maintain their mutually beneficial business relationship,” including their ongoing strategic partnership agreement, Tencent added in its statement.

Image: Tencent