Tencent Passes Facebook in Market Valuation

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Their genuine prowess aside, the Financial Times points out that the rise of China's tech giants has been greatly aided by Beijing's ban on the USA titans - Facebook, Twitter, YouTube and Google.

Shares of Tencent set new record highs on Tuesday during Asian trading giving the company a HK$4.17 trillion market capitalization equal to $534.5 billion. The operator of the ubiquitous WeChat messaging service is now valued at $523 billion, a whisker above Facebook's $522 billion on Monday.

Tencent's market cap has furthermore than tripled ever since March 2014 when it attained $150 billion, exceeding Intel in the course. WeChat almost at one billion overall users, but internationally, WeChat is not commonly used.

Investors are betting that Tencent can lean on its billion-plus users and hit games like Honour of Kings to evolve into an advertising and entertainment titan along the lines of a Google or Facebook.

The Chinese company also enjoys a privileged status in its home market, where Western rivals like Facebook and Twitter are blocked by the government.

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Tencent the internet giant based in China passed Facebook in market value only one day after it became the first technology company in Asia to reach the valuation level of $500 billion.

Tencent is also an avid investor overseas. Its initial public offering price started at $0.47 per share, and now has reached $53.76 per share as of Monday.

Tencent's shares, traded in Hong Kong, have doubled in value this year as the tech company's earnings have repeatedly outmatched analysts' expectations, AFP reported. Tencent's publishing-focused arm was spun off and listed in Hong Kong earlier this year.

Tencent still has a way to go if it wants to catch up with Silicon Valley's top tech titans.

Despite its phenomenal growth, Tencent is way behind the world's most valuable company, Apple, which is now valued at $873bn.

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