Tencent beats Alibaba to join the $500 billion club

Chinese Tech Company

Shares of the 19-year-old group, which is scheduled on the Hong Kong Exchange, assembled to attain HK$418.80 to offer it a market top of HK$3.99 billion which surpasses the $500 billion grade.

The technology firm is the first from China to reach the landmark valuation as it closes in on the likes of Facebook and Amazon.

Noticeably, its major domestic rivals Alibaba, the country's e-commerce leader, and search engine provider Baidu are now valued at US$474.2bn and US$83bn respectively.

Shares of the Chinese fintech company, listed on the Hong Kong Stock Exchange, surged to $420.00, jumping 4.1 percent. Tencent, which has no sell ratings, is now also just 2.4% below the HK$440.64 average price target of 36 analysts surveyed by Bloomberg, whereas analysts expect Facebook to rise another 16% in the next 12 months. Last week it said its profits had jumped almost 70 per cent. Its fantasy role-playing game Honour Of Kings will debut in the United States next year. In 2016, Tencent acquired a majority stake in Finnish smartphone maker Supercel.

Other fast-growing parts of the business include digital content such as video, as well as online advertising.

Lau said that Malaysia is much large in that sense as it won 20 million users on WeChat, which is potentially huge, and towards internet products from the China the market is also quite warm.

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 USA markets on Monday.

An executive recently also told Reuters the company is close to making Malaysia the first foreign country to roll out its WeChat ecosystem, pitting it against Alibaba as they scramble for new growth opportunities outside China. And while Amazon was let in, it was quickly quashed by Alibaba's Tmall and Taobao e-commerce sites.

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