Tencent's return to the top 10 club shows China rebound bets are soaring

play article
Subscribers can listen to this article

Tencent Holdings entered the club of the world’s 10 most-valuable companies for the first time in six months, reflecting broader investor optimism for Chinese equities as the nation dismantled its stringent Covid Zero policy and refocused on growth. 

The online gaming firm’s shares have risen more than 80% since a low in late October, overtaking oil and gas producer Exxon Mobil Corp. this week to become the 10th biggest stock globally. 

The move also underscores the whipping US stocks have taken over the past year, primarily due to massive monetary tightening by the Federal Reserve. The S&P 500 Index is down about 20% from its record high reached a year ago, and firms like Tesla Inc. and Meta Platforms Inc. have fallen out of the top 10 group.

Chinese stocks are off to a flying start in 2023 after being caught in a downward spiral for much of last year. Key gauges have climbed in all three sessions this year as signs emerged that a crackdown on internet firms was easing and as policy makers took more steps to support the embattled property sector. A growing conviction that the abrupt relaxation of virus curbs will eventually fuel a revival in consumption has aided the rally.

Tech shares are among the biggest gainers this week as China’s approval of a plan by Jack Ma’s Ant Group Co. to raise $1.5 billion for its consumer unit improved sentiment. That’s after President Xi Jinping’s “common prosperity” campaign crushed the sector over the past two years.

Shenzhen-based Tencent commanded market value of about $442 billion as of Wednesday’s close in Hong Kong. Still, that is less than half of the $949 billion it enjoyed at a peak in January 2021.  

--With assistance from Jeffrey Hernandez.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders