Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Tencent Gains as Barclays Says Among Top Internet Picks

Tencent App
Tencent Holdings QQ smartphone app is displayed on a laptop computer in Beijing. Photographer: Nelson Ching/Bloomberg

Oct. 21 (Bloomberg) -- Tencent Holdings Ltd., Asia’s biggest Internet company, surged to a record in Hong Kong trading after analysts at Barclays Plc named it among its top picks in China’s online sector.

The shares rose 4.2 percent to close at a record HK$447.80, giving the company a market value of $107 billion. Tencent, along with Qihoo 360 Technology Co. and Ctrip.com International Ltd., are the top picks for Chinese Internet stocks, Barclays analysts led by Alicia Yap said in a report today.

Tencent, which has doubled annual revenue in the past two years, is tapping into the sevenfold surge in China’s online population since its 2004 initial public offering with games, e-commerce and the WeChat instant messaging service. The stock is also benefiting from a rally in U.S. Web stocks as Google Inc. and Facebook Inc. reached record highs last week, said Billy Leung, an analyst at RHB Research Institute Sdn. in Hong Kong.

“Tencent has higher revenues and net income and is more diversified. So I would say that the market is appreciating this increasingly,” said Duncan Clark, the Beijing-based chairman of BDA China Ltd., which advises technology companies. “WeChat has over 100 million users outside China and Tencent is more active in taking stakes in leading games or social companies overseas.”

Last month Tencent paid $448 million for a 36.5 percent stake in Sohu.com Inc.’s Sogou search unit, China’s third largest. The company controls Riot Games Inc., a Los Angeles online-game publisher.

Shenzhen, China-based Tencent had 990 million registered instant messaging accounts at the end of the second quarter compared with about 1 million accounts in 1999, according to its website.

To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.