Chinese Tech Company Competes in Elite $500 Billion Club

Kelley Robertson
November 23, 2017

"Tencent's high growth, as demonstrated by its quarterly results, has supported the rally in its shares".

Just a day after it became the first Asian technology firm to enter the $500bn valuation mark, China's biggest social media network and gaming firm Tencent Holdings has now surpassed Facebook in terms of market value.

Of the other four top rated companies in the world namely, Apple Inc., Alphabet Inc., Microsoft Corp. and Inc., only Amazon is valued a much less.

Tencent is well known in the industry as the manufacturer of the instant messaging app, WeChat, not to mention a number of online games.

Chinese stocks glowed red hot in Hong Kong on Tuesday, with heavyweight Ping An Insurance Group Co. and China Pacific Insurance Group Co. surging more than 7 percent amid optimism over earnings growth.

Tencent becomes the first Chinese tech firm valued over $500B

"Hong Kong valuations are still attractive and H-share financials look like a safe bet", said Sam Chi Yung, a Hong Kong-based senior strategist with South China Financial Holdings Ltd.

WeChat Pay's launch in the Philippines came after a unit of Tencent rival Alibaba launched a mobile payment system for Filipinos in partnership with Globe Telecom. In 2016, Tencent acquired a majority stake in Finnish smartphone maker Supercel. This combined with its 1 billion large WeChat user base in China has helped Tencent reach its $500 billion heights. Games such as Honour of Kings, Dungeon Fighter Online, Clash of Clans, and League of Legends.

However, the company is not satisfied. Hong Kong Exchanges & Clearing rallies 5.5%; turnover on main board reaches HK$157 billion (HK$20.1 billion), way ahead of the year's previous high of around HK$140 billion.

Tencent also has large investments in major companies such as Snap, Tesla, and Activision Blizzard.

Tencent is certainly creeping up on USA based firms like Facebook, with its $520.14 billion and Amazon, now valued at $544.46 billion.

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