A Chinese tech company has become more valuable than Facebook

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Hong Kong's Hang Seng Index cleared the 30,000 barrier for the first time in a decade in early trading on Wednesday, as financial companies rallied.

Tencent's market cap is above Chinese e-commerce giant Alibaba, which stands at $474.15 billion, and Baidu at $82.97 billion.

According to Bloomberg, Tencent shares hit a record high at $523 billion market value, marginally edging Facebook's $522 billion at the close of the USA markets on Monday. Since then, it has rallied 11,251 per cent. Tencent's stock this year alone is up 121.4 per cent.

Investors are of the view that the large customer base of its social media platforms which have other a billion users and its hit games like Honour of Kings will aid the company to become an advertising and entertainment giants, just like big tech companies Google and Facebook.

Tencent is certainly creeping up on US based firms like Facebook, with its $520.14 billion and Amazon, now valued at $544.46 billion. Last week, the Chinese company reported a 67 per cent year-on-year rise in net profit for the third quarter, beating market expectations. But the company is a sprawling business. In general, the gain was up 69 percent year - on - year and returns ascended by 61 percent, thanks to Tencent's games industry.

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Company president Martin Lau said Tencent will invest further in digital content, namely online video, with a focus on overseas a acquisitions.

WeChat messaging service is now valued at $523 billion, above Facebook's $522 billion.

While Tencent may not be a household name in the USA, it's continuing to push into new areas, including making big investments in America. It has taken stakes in Snap and Tesla, and in several Asian based startups including Ola, a rival of Uber based in India. Barclays raised its price target from $49 to $59 on Monday.

This article was first published on CNBC.

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