Tencent’s market cap exceeds $200 billion

16 Apr

Shenzhen-based Internet giant Tencent Holdings Ltd hit a market cap of more than $200 billion on Monday, making it more valuable than U.S. tech firms Amazon.com Inc, IBM Corp and Oracle Corp.

China’s No. 1 social networking and online entertainment firm rose 5.38 percent to close at HK$170.50 ($22) in trading in Hong Kong, which gave it a market valuation of $206 billion, above Oracle’s $190 billion, Amazon’s $178 billion and IBM’s $161 billion.

Tencent’s shares have surged 52 percent from the beginning of this year, bringing it within reach of arch rival Alibaba Group Holding Ltd’s $210 billion and Facebook Inc’s $230 billion.

The jump in Tencent’s share price comes as Hong Kong stocks hit new seven-year highs on Monday. Under the Shanghai-Hong Kong Stock Connect scheme, China recently permitted mutual funds to buy stocks on the Hang Seng Index, spurring the surge in the already red-hot Tencent shares.

Analysts believe more cash will flow in as investors hunt for bargains.

By contrast, New York-listed Alibaba, the world’s top e-commerce firm, has seen its shares slide 19 percent year-to-date. That slump derives from investor excitement wearing off after the Alibaba’s record-setting $25 billion IPO last September, and mediocre third-quarter earnings results, experts say.

Facebook is up five percent since the beginning of 2015.

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