Tencent has lost the title of the most valuable publicly traded company from China
The Chinese giant Tencent had long been valued higher on the stock exchange than any other company from the Middle Kingdom. However, the dynamics have changed.
Honor of Kings
As noted by Bloomberg, Tencent has been overtaken by CXMT, the largest domestic manufacturer of memory chips. At the end of July, it held an IPO with immense excitement that resulted in its shares soaring by 467%, reaching a market value of $524 billion.
For comparison, Tencent's market value is currently estimated at $510 billion.
Analysts surveyed by Bloomberg predict that Tencent will continue to lose ground as stock market investors are increasingly less interested in traditional internet holdings. In the wake of the AI boom, they are eagerly investing in chip-focused companies.
It is noteworthy that since the beginning of the year, Tencent has decreased by 26%. The latest significant drop in its share price occurred yesterday, August 12, following the publication of the company's financial report for the second quarter of 2026. Although Tencent reported an increase in revenue and net profit, it also mentioned a sharp rise (by 176%) in capital expenditures due to efforts to strengthen its AI segment, which seemingly dissatisfied shareholders. Incidentally, Tencent's gaming sector is doing well, with quarterly revenues from games increasing by 11% to 65.9 billion yuan ($9.77 billion).