South China Morning Post
Tencent blasted past Facebook to become the world’s most valuable social media network by market capitalisation in intraday trading on Tuesday.Tencent, the Chinese online games and WeChat giant, soared as much as 4.7 per cent to HK$544.50, taking its market capitalisation to HK$5.2 trillion (US$670 billion), compared to the American rival’s market cap of US$657.83 billion. If it can hold to at least HK$533 at the close, it will be the world’s seventh-largest company.Just over two weeks ago, Alibaba, the e-commerce behemoth and owner of the South China Morning Post, ousted Facebook as the world’s sixth-most valuable company. Alibaba’s market cap is nearly US$673 billion.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.American technology and internet companies have long been the world’s leaders. China’s growing innovation and clout in everything from digital payments and 5G development to online games and e-commerce are part of the raft of tensions rise between Washington and Beijing.“With rising China GDP growth, we will see more and more Chinese companies enter the top 10 or top 100 companies,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. “This long-term trend will continue in the foreseeable future. However, the pandemic and worsening China-US relationship may make the situation complicated.”Tencent’s ecosystem is stuffed with games, social networking, mobile payments, music and videos, as well as the cloud. Its WeChat social media, messaging and mobile payments app has more than 1 billion users. The stock has clawed its way back from a disastrous 2018, when it faced a nine-month freeze on game approvals.“You can barely get through a day without touching one of Tencent’s applications,” Vey-Sern Ling, senior analyst at Bloomberg Intelligence said in an interview with the Post earlier this year.Alibaba overtakes Facebook as world’s sixth-most valuable company after shares soar by 10 per cent in Hong KongTencent has 52 “buy” ratings, four holds, and no sells. It has gained more than 40 per cent year to date.It could rise to HK$651 over the coming 12 months, says Jefferies analyst Thomas Chong, who has the highest target price on the stock among analysts tracked by Bloomberg.It is also known for its hugely popular games, including Honour of Kings and Peacekeeper Elite.Jefferies’ Chong calls Tencent a “global mobile games powerhouse”.“Tencent looks well positioned to capture overseas expansion opportunities riding on solid execution in different game genres and operating over 480 mobile games,” Chong wrote last week as he boosted Tencent’s target price from his assessment of HK$592 the month before.Also on Tuesday, Taiwan’s TSMC surpassed Visa as the world’s 10th-largest stock by market cap.Saudi Arabian Oil, better known as Aramco, is the world’s most valuable company, with a market cap of US$1.75 trillion, followed by iPhone maker Apple at US$1.61 trillion.Tencent founder Pony Ma Huateng is China’s richest person and the world’s 20th wealthiest, with a fortune worth US$52.2 billion, according to Bloomberg billionaire rankings. He is followed by Alibaba founder Jack Ma, who is the world’s 21st wealthiest person, at US$50.5 billion.Purchase the 120+ page China Internet Report 2020 Pro Edition, brought to you by SCMP Research, and enjoy a 30% discount (original price US$400). The report includes deep-dive analysis, trends, and case studies on the 10 most important internet sectors. Now in its 3rd year, this go-to source for understanding China tech also comes with exclusive access to 6+ webinars with C-level executives, including Charles Li, CEO of HKEX, James Peng, CEO/founder of Pony.ai, and senior executives from Alibaba, Huawei, Kuaishou, Pinduoduo, and more. Offer valid until 31 August 2020. To purchase, please click here.More from South China Morning Post: * Tencent offers to take Chinese search engine Sogou private as US-China relations worsen * Tencent’s WeChat cuts off service in India amid the country’s ban on Chinese apps * After skyrocketing to global tech stardom, is Chinese-owned TikTok on its way down? * Hang Seng Index, China stocks gain as Moderna launches large-scale vaccine trial in US in hunt to beat Covid-19 * Hong Kong stock exchange to get new tech index tracking Alibaba, Tencent and 28 other peersThis article Tencent overtakes Facebook as the world’s most valuable social media company with a market cap of US$670 billion first appeared on South China Morning PostFor the latest news from the South China Morning Post download our mobile app. Copyright 2020.