Tencent Overtakes Facebook As Hong Kong Stocks Flash-Smash Overnight

Hang Seng futures exploded over 5% higher as after hours trading began last night, then crashed back to unchanged as the underlying cash index hit its highest since Nov 2007 on the heels of a surge to new record highs for Chinese tech giant Tencent - which is now larger than Facebook by market cap.

Contracts for November delivery rose to 31,341 at 5:15pm for a 5.1% premium over the underlying gauge...

Hong Kong’s benchmark equity measure advanced 1.9% on Tuesday to its highest close since November 2007, as WSJ reports, one day after its market capitalization surpassed $500 billion, the company behind messaging app WeChat rallied by another 2.4% on Tuesday, lifting its market value to $523 billion.

If Tencent were in the S&P 500, it would be the fifth most valuable company by market value.

It would surpass Facebook at $519 billion as of their closing prices Monday according to FactSet.

Tencent, the world’s largest videogame publisher by revenue, is best known in China for its WeChat and QQ messaging and mobile-payment apps, which are installed on almost every PC and smartphone there. The company has lifted its international profile too, with several big deals in recent years, including acquisitions of the game developer Epic Games Inc. and a minority stake in videogame company Activision Blizzard.

It recently purchased a 12% stake in the Los Angeles social-media company  Snap, becoming one of its largest shareholders, Snap revealed in a filing earlier this month.

While little known outside of the U.S., Tencent along with Alibaba and search giant Baidu are China’s three big Internet companies. They have diversified beyond their core businesses in recent years, placing big bets on online video-streaming services and other entertainment plays.

“Tencent is an ecosystem, like Google or Apple,” said Muzhi Li, a Hong Kong-based analyst at Arete Research.


“It has many assets that have not monetized, like ads, payment and content, so investors have big hopes for the stock.”


Bai Suzhen Tue, 11/21/2017 - 08:49 Permalink

If Asia is the future, then Facebook and Twitter can pack up and go home.  People over there, and the ones from over there that are over here, live on WeChat.

bottom_line Tue, 11/21/2017 - 09:26 Permalink

I remember when GE and Microsoft used to duke it out for the top spot.  Back in '99, when stocks routinely doubled, I told my lunch buddies "There's no way MSFT is going to be worth a trillion dollars."  I saw the look of recognition on their faces.  That was a few months before the bubble burst.

mijev Tue, 11/21/2017 - 09:31 Permalink

This article doesn't scratch the surface of what tencent has done in china as far as payment systems go. They literally took on the banks and won and in the process made debit and credit cards obsolete. Not to mention cash. Now the banks have to kow tow to tencent. They also obliterated apple and its shitty apple pay system even though the iphone is wildly popular. You can use it at any shop, send money to a friend, to a stranger in seconds, pay for a bicycle at 15 cents a day or a phone charger at a bar, or order a taxi etc just using your phone. The back end of the banking system in China is as antiquated as America's but the front end is leading the world. And to be honest I found it addicting. So aggravating to come back and stand in line at the supermarket while.some annoying cunt searches for a coin at the bottom of her bag or mistypes her pin.  I also banged a couple of hot Chinese girls if you'd prefer to hear about that.