** Shares of China Ruyi Holdings 0136.HK fall as much as 8% to HK$2.30, after the content producer and online gaming group says to issue new shares to fund part of its acquisition

** Ruyi says it has agreed to buy 30% of Beijing Yonghang Technology from a Tencent 0700.HK subsidiary for 825 mln yuan ($112.55 mln) as the company aims to obtain more attractive IPs and games through investment and business expansion

** The deal will be settled 742.5 mln yuan in cash to be financed by internal resources, and the remainder by an issue of 36.67 mln new shares at HK$2.432 each - Ruyi

** Beijing Yonghang's core assets include QQ Dance, QQ Dance II, QQ Dance Mobile and other games

** Tencent 0700.HK shares climb 2%

** Hang Seng Commerce & Industry Index .HSNC rises 2%, Hang Seng Tech Index .HSTECH jumps 2.3% and Hang Seng Index .HSI adds 1.4%

($1 = 7.3303 Chinese yuan renminbi)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))