Chinese Tech Company Competes in Elite $500 Billion Club

Chinese Tech Company Competes in Elite $500 Billion Club

Chinese Tech Company Competes in Elite $500 Billion Club

Chinese social networking giant Tencent Holdings Ltd. briefly passed USA peer Facebook Inc.in market value to become the world's fifth most valuable company, following a major rally on bullish sentiment about the former's growth prospects. Alibaba is now the world's seventh largest company, with a market value of $481 billion, according to Bloomberg.

With a valuation of $48.3bn, Forbes magazine has stated that Tencent's chief executive, Ma Huateng, is worth more than the founders of Google, Larry Page and Sergey Brin.

Tencent became a public company in 2004 in Hong Kong at the per share price of HK$3.70.

According to Bloomberg, Tencent shares hit a record high at $523 billion market value, marginally edging Facebook's $522 billion at the close of the US markets on Monday. Since then, it has rallied 11,251 per cent. Tencent's stock this year alone is up 121.4 per cent.

Tencent now sits alongside a handful of USA companies you are much more likely to have heard of: Apple, Amazon and Microsoft.

Tencent is now valued at $523 billion, beating Facebook by $1 billion. Last week it said its profits had jumped almost 70 per cent. The messaging app has 500m users in China which acts as a "portal" for thousands of different products, from payments to customer service.

Online and mobile games are a key part of the business - the division brought in over $4 billion of revenues last quarter.

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.

Company president Martin Lau said Tencent will invest further in digital content, namely online video, with a focus on overseas a acquisitions. It has taken stakes in Snap and Tesla, and in several Asian based startups including Ola, a rival of Uber based in India. Barclays increased the price target to $59 from $49 for Tencent and increased its forecast for revenue for both 2018 and 2019.

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