Chinese internet giant Tencent surpasses Facebook in valuation

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Soft toys promoting QQ, operated by Tencent Holdings Ltd, are displayed at an expo in Guangzhou, Guangdong province, Dec 6, 2016.

As reported by the Financial Times, that means the firm has joined an elite group dominated by USA companies including Facebook, Amazon, Microsoft, and Apple.

Tencent and Chinese internet rival Alibaba Group Holding Ltd. both zoomed into the global top 10 this year, as shares of the pair soared on bullishness about their growth prospects.

Tencent's latest surge has also put it within range of USA e-commerce giant Amazon.com Inc., which is the world's fourth largest company with a current market value of $543 billion.

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Chinese social networking giant Tencent Holdings Ltd. briefly passed USA peer Facebook Inc.in market value to become the world's fifth most valuable company, following a major rally on bullish sentiment about the former's growth prospects.

The Shenzhen-based company, which is being headed by Pony Ma Huateng, was first launched in 2004, when the price for its shares was at $3.70 Hong Kong dollars (around $0.47 at the time), or $3,700 Hong Kong dollars ($473.69) for one board lot, which has 1,000 shares. Since then, it has rallied over 11,000 percent.

Tencent shares hit a record high of 439.6 Hong Kong dollars during Asian trading hours on Tuesday, giving it a market capitalization of 4.17 trillion Hong Kong dollars ($534.5 billion). "It would be a wrong decision to sell it just for some short-term gain". It was made available to a section of the public for testing on Tuesday, with more than 30 million pre-registrations.

While Tencent's mobile game application "Honor of Kings" proves to be quite popular, its social media app counterpart, on the other hand, is already making waves in China.

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