Increase in Market Value of the Chinese Giant Broke a Record!
The increase in the market value of the Chinese giant broke a record. Hong Kong stock traders continue to buy Tencent Holdings Ltd shares. Tencent, one of the largest technology companies in China, outperformed Tesla by showing a successful monthly performance.
The rise in the market value of the Chinese giant broke a record. In Tencent, one of the largest technology companies in China, traders are purchasing thousands of contracts in January futures options, which will expire Thursday. The premium for a contract with a strike price of 800 Hong Kong dollar increased by 90,300 percent on the first trading day of the new week. In addition, traders are trying to sell options quickly, whose value has decreased by 84 percent.
Tencent shares gained 10.9 percent on Monday, covering two-fifths of the total daily earnings in the Hang Seng Index.
The Hang Seng Index reached 30,159 points with a 2.41 percent gain at close. Thus, for the first time since May 2019, the Hong Kong stock index closed over 30,000, which is the key level.
In addition, Tencent Holdings Ltd. is one of the leading companies traded in Hong Kong, which Chinese traders started to focus on in 2021. According to stock market data, roughly a quarter of net purchases are mainland investors.
Tencent’s market value reached $ 232 billion this year. Thus, the company recorded as the company with the highest market value in the world. US-based electric car manufacturer Tesla, founded by Elon Musk, ranks second with $ 134 billion.
Tencent also found support from Hong Kong’s first public offering market with rapid growth.
With the goal of raising $ 5.4 billion in funding, Tencent-linked Kuaishou Technology may be the largest internet IPO since Uber Technologies Inc.