Daiwa says Bilibili (09626.HK) has issued $700m of zero‑coupon convertible bonds due 2031 and Tencent (00700.HK) has completed sale of its roughly 9.6% stake. Daiwa calls the structure a win‑win: it removes Tencent’s long‑standing cash‑out pressure, supplies about $400m of incremental cash to Bilibili and triggers an immediate $300m share buyback and cancellation to limit dilution. At the preliminary conversion price the bonds would convert into ~35.2m shares (gross dilution ~8.4%); after cancel

Daiwa says Bilibili (09626.HK) has issued $700m of zero‑coupon convertible bonds due 2031 and Tencent (00700.HK) has completed sale of its roughly 9.6% stake. Daiwa calls the structure a win‑win: it removes Tencent’s long‑standing cash‑out pressure, supplies about $400m of incremental cash to Bilibili and triggers an immediate $300m share buyback and cancellation to limit dilution. At the preliminary conversion price the bonds would convert into ~35.2m shares (gross dilution ~8.4%); after cancelling the repurchased stock net dilution is around 3.5%. Daiwa reiterates a buy rating and says the deal raises long‑dated zero‑coupon funding at a cost well below plain offshore bonds.