Tencent to Be The Foremost Chinese Tech Firm Priced Greater than $500B

Tensent

Tencent's latest surge has also put it within range of US e-commerce giant Amazon.com Inc., which is the world's fourth largest company with a current market value of $543 billion.

Tencent has developed into the first Chinese company to be priced at further than $500 billion.

By Tuesday afternoon, Tencent's market capitalisation had reached 4.15 trillion Hong Kong dollars ($531 billion), surpassing the U.S. social network's $519 billion.

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.

The Hong Kong measure trades at 14 times reported profits, compared with more than 20 times for the Stoxx Europe 600 Index and the S&P 500 Index.

Hong Kong stock investors have had a rocky ride in the past 10 years, buffeted by the global financial crisis, the bursting of two different Chinese stock bubbles, as well as concerns over European debt.

The market movement made China's Tencent one of the world's top five most valuable companies, although it is still far short of leader Apple which is now valued at $873 billion. The number is likely to increase after the company acquired a majority stake in the Finnish smartphone maker, Supercell.

It is also expected to bring its hugely popular multiplayer game Honour of Kings to the United States.

Another factor to consider in Tencent's massive success is its online publishing and e-book unit China Literature, which was launched earlier this month. It has acquired stakes in both Tesla and Snap, and invested in numerous start-ups in Asia including India's Uber rival Ola. Barclays raised its price target from $49 to $59 on Monday.

Barclays on Monday said that it attributes the accelerating growth in revenue at Tencent with its continued monetization improvement in multiple important business segments, like video, payment services, gaming, and noted that its growth in users remains strong.

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