Tag Archives: Tencent

Tencent posts better-than-expected Q1 results

Shenzhen-based Tencent Holdings, operator of China’s biggest video games and social media businesses, beat estimates to record a 17% year-on-year increase in first-quarter net profit, primarily driven by commercial payment, social advertising and digital content services.

The Hong Kong-listed tech giant posted a net profit of RMB27.2 billion (US$3.9 billion) in the quarter ended March 31, up from RMB23.3 billion in the same period last year and ahead of the RMB19.4 billion consensus from analysts compiled by Bloomberg.

Revenue grew 16% to RMB85.5 billion, compared with RMB73.5 billion a year ago, but fell short of the RMB88.7 billion consensus analysts’ estimate.

Read more here.

Ping An, BOC, Tencent top of the pops

Caixin Global has an interesting report out wrapping up how major investment banks are picking stocks worthy of consideration because of the Greater Bay Area masterplan unveiled recently by the State Council. Insurers such as Ping An, banks such as Bank of China (Hong Kong), and tech companies such as Tencent are among their top picks.

Ping An Insurance is headquartered in Shenzhen, listed on the Hong Kong stock exchange. It generates 18% of its premiums from Guangdong, the highest among its peers, according to DBS.

Both the Swiss-based UBS and the Singapore-based DBS picked Shenzhen-headquartered, Hong Kong-listed Tencent Holdings Ltd. DBS said it was because they believe favorable policies for fostering talent in the Greater Bay Area can increase the internet giant’s capacity for innovation.

In the property sector, UBS favored Guangzhou-based Times China Holding Ltd. and Shenzhen-based Logan Property, while DBS picked Hong Kong developer Yuexiu Property Co., China Resources Land Ltd., China Vanke Co., Guangzhou R&F Properties Co., Kerry Properties Ltd. and Shenzhen Investment Ltd.

DBS said Guangzhou-based automaker GAC Group and Shenzhen-based electric car maker BYD will get a boost as demand for automobiles is expected to rise with government investments into improving the GBA’s transportation network.

The region’s urbanization and infrastructure buildout will also boost cement producers China Resources Cement Holdings Ltd. and Anhui Conch Cement Co., and railway construction companies China Railway Construction Corp. and China Railway Group Ltd., DBS said.


Tencent plans $5b dollar bond sale


Shenzhen-based Tencent is planning to raise about US$5 billion in US dollar-denominated bonds this week, reports Reuters.

The deal could be Asia’s largest so far this year, Refinitiv data shows. Chinese property developer Evergrande, also Shenzhen-based, sold $2.8 billion in bonds in January, currently the biggest issue.

Tencent said in an exchange filing on Monday it had increased its Global Medium Term Note Programme limit to $20 billion from $10 billion and that it planned to conduct an “international offering”, without specifying any size. The tech giant has a US$6 billion offshore issuance quota from China’s state planner, the National Development and Reform Commission (NDRC), Reuters cites an unnamed source as saying.

Tencent to build fintech lab focused on ‘open banking’


Tencent is putting two of its key subsidiaries together in a fintech innovation lab focused on the research and development of applications for “open banking.” The joint venture is between Tencent Cloud, a global cloud services provider, and WeBank, China’s first online bank.

Open banking can be defined as a collaborative model in which banking data are shared through APIs between two or more unaffiliated parties.

WeBank’s Wei Li Dai (微粒贷) financial product was the first in China to provide consumers with a complete online lending process, from application and approval to the provision of funds. Borrowers are not required to provide collateral or security for credit, and instead only need to provide their identification numbers and mobile phone numbers through Tencent’s ubiquitous social media app WeChat and instant messaging software service QQ in order to obtain loans of between RMB500 and RMB200,000.

Tencent Cloud and WeBank’s new collaboration will be based on the concept of “open banking” to explore technical innovations on its fundamental structure, financial application and experiential innovation.