Tencent Holdings Ltd. (OTC: TCEHY) rises to the top becomes the first Chinese company to reach over a $500 billion valuation.
Shares of the Chinese fintech company, listed on the Hong Kong Stock Exchange, surged to $420.00, jumping 4.1 percent. Tencent hit a market cap of HK$3.99 trillion or roughly $510 billion. Alibaba is second behind Tencent, with a market cap of $481.1 billion.
Tencent joins other major US tech companies such as Amazon, Facebook, Apple, and Alphabet, who have all also surpassed the $500 billion valuation mark.
Tencent went public back in June 2004. Its initial public offering price started at $0.47 per share, and now has reached $53.76 per share as of Monday.
The fintech company continues to show strong growth, as it reported its third quarter financial results last Wednesday. Tencent reported a 61 percent increase year over year in total revenue and operating profits grew 57 percent year over year.
The growth is largely due to its games, payment related services, digital content subscriptions and sales, advertisements, and its social service platform WeChat. WeChat nearly at one billion overall users, but internationally, WeChat is not commonly used.
Its gaming business drives a significant amount of its revenue. Games such as Honour of Kings, Dungeon Fighter Online, Clash of Clans, and League of Legends. Some games are mobile, while some are PC, but regardless of the platform, Tencent’s games are highly popularly globally.
Tencent also has large investments in major companies such as Snap, Tesla, and Activision Blizzard.
Tencent shares have jumped 121.4 percent year to date now.