China’s State Administration for Market Regulation (SAMR) penalized Tencent Holdings on Wednesday (Jan. 5) for failing to properly report its transactions.

Late on Tuesday, Tencent reduced its stake in Sea Ltd, a tech giant of gaming and e-commerce in Singapore, which is considered the most valuable stock in Southeast Asia. With 14.5 million shares sold worth $3 billion, Tencent cut its stake in Sea Ltd 18.7% from 21.3%, according to Reuters.

The sale came after Tencent announced last month it would divest $16.4 billion of its stake in, China’s second-biggest e-commerce firm, amid pressure from Beijing’s broad regulatory crackdown on technology firms.

Some other tech giants such as Alibaba Group Holding and Bilibili also got fines for not reporting their deals to SAMR.

Under China’s 2008 anti-monopoly law, the maximum fine can be up to 500,000 yuan (about $79,000) per deal. 

SAMR is focusing on unreported acquisitions from tech giants. It named 43 investments that corporations failed to report to the state’s regulator and received a fine in November.

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