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Tencent: Discover the Chinese tech giant 

Along with Alibaba and Baidu, Tencent is one of the biggest Chinese businesses operating in the digital space. They provide a wide range of services in several industries, from cloud activities to gaming, artificial intelligence, social networks, music, and films, among others. 

Since its products and services are so widely used in China, Tencent is perhaps the most significant internet company in the country, which makes it a valuable choice for investors wanting to get exposure to the Chinese market.

With a market capitalization of about 433,529 billion at the time of writing (beginning of July), the Chinese multinational technology company is among the top 15 most valuable companies by market value.

Like most tech-related companies, Tencent’s stock price has been down since January 2022, losing more than 22% since the beginning of the year, but gaining around 23% over a period of 5 years. Fears of higher inflation and its implications for global growth have weighed on the stock market.

Some traders like to invest directly in the company to become a shareholder and benefit from all the advantages, but there are also other financial products that allow you to invest in companies like Tencent over the short term without owning any shares, like CFDs (Contracts For Difference). If you want to take advantage of the short-term volatility of Chinese stocks when they rise or fall, you have to use regulated CFD brokers, such as easyMarkets.

What is Tencent?

Originally founded by Yi Dan Chen, Chen Ye Xu, Hua Teng Ma, Li Qing Zeng, and Zhi Dong Zhang in 1998, Tencent has been listed on the Hong Kong Stock Exchange since 2004. The company boasts two large and award-winning skyscrapers, called the Tencent Seafront Towers, for its headquarters in Shenzhen, China.

Tencent’s company is segmented into 6 main areas that are each responsible for their own various strategic priorities: 1) Corporate Development Group (CDG), 2) Cloud & Smart Industries Group (CSIG), 3) Interactive Entertainment Group (IEG), 4) Platform and Content Group (PCG), 5) Technology Engineering Group (TEG) and 6) Weixin Group (WXG).

CDG is responsible for a number of innovations, as well as financial technology, advertising, marketing, strategic planning, investments, mergers, and public relations. 

CSIG handles the company’s cloud, network security, and industry internet strategies. 

IEG is broadly the entertainment division of the company, controlling research and development, games, and eSports. 

PCG is responsible for providing premium digital content through its social media platforms, QQ, and QZone, for example. 

TEG is the company’s customer support network, responsible for technology and operational platforms. 

Lastly, WXG is the hub for the Weixin ecosystem, which includes products like Official Accounts, Mini Programs, WeCom, Weixin Pay, QQ Mail, and WeRead.

What are Tencent’s goals?

Tencent believes in using its various technologies and programs for the benefit of the global community. 

It has facilitated the connection of over a billion people worldwide, through its communication and social media services, and aims to help families and friends stay in touch, streamline daily activities like banking, entertain through its gaming services, and help people grow their businesses digitally.

The company strives to incorporate social responsibility into its products and services and values a spirit of openness and fairness, proactivity through positive contributions, collaboration, sustainability, and creativity through exploration.

Last Updated on 2022/07/10

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