(Yicai Global) Nov. 24 -- Chinese internet behemoth Tencent Holdings Ltd. [HKG:0700] has denied reports that it will form a joint venture with a subsidiary of Japanese gaming giant Nintendo Co. [TYO:7974].

Chinese media outlet Duowan reported that IQue Ltd., Nintendo's Chinese arm, would be renamed Nintendo Tencent Co. with the Chinese firm overseeing localization, distribution and sales operations in Greater China as controlling shareholder. The Japanese firm's Hong Kong and Taiwanese units would be responsible for console and game sales in their respective local markets.

Details of the deal would be announced before Chinese New Year in February 2018, but Tencent claimed the report was "untrue" in a statement on social media.

Nintendo has been rumored to be planning to reenter China. It tried once in the 1990s but its products did not strike a chord with Chinese consumers. It pulled out of the market in 2015 without giving specific reasons, online media outlet Zol reported previously.