After Colin Huang of Pinduoduo overtook Jack Ma as the second richest person in China, Tencent has overtaken Alibaba as the most valuable company:
This is following a recent rally:
We have been writing about Tencent for a while. Just a review of some of the TLD blog entries:
Despite the facts that everyone uses WeChat in China or plays League of Legends/PUBG, many outside China know Alibaba better, maybe because of its name, maybe because of the charismatic nature of its founder, Jack Ma.
However, Tencent’s Pony Ma (no relation) is currently the richest person in China, ahead of Jack and Pinduoduo founder Colin Huang.
In the beginning of 2018, Tencent share price reached a new high (and not much different from the current levels). The next half a year was painful – dropping prices, and lots of voices of doubt about the company’s future in China:
However, Tencent has been, and still is, very successful in its investment strategy. Unlike Alibaba, who basically seeks to have tight control over any investee, Tencent’s more laissez-faire approach is achieving better results.
Inside China, it has been exploring new businesses, and built a few listed companies under the group. There are doubters, but the company seems to have solved its internal problems (which are common to any company of that size) and puts itself back in the growth trajectory.
The threat of ByteDance, formerly known as Toutiao, is probably the biggest for Tencent. ByteDance’s international ambitions are also quite obvious – and being a young company, it does not have the baggage that marred global expansion of Chinese companies including Alibaba and Baidu:
We will give a more systematic assessment of Tencent over the coming weeks, watch this space!
btw, this sharing by WeChat’s creator has some very profound thoughts which are worth reading: