Tencent is no longer one of the world's 10 biggest companies

Tencent Holdings Ltd has lost its spot as one of the world’s 10 biggest companies. Photo: File

Tencent Holdings Ltd has lost its spot as one of the world’s 10 biggest companies. Photo: File

Published Oct 10, 2018

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INTERNATIONAL - More bad news for Tencent Holdings, the Chinese Internet giant has lost its spot as one of the world’s 10 biggest companies.

After shedding over $200 billion in market value this year, more than any other company worldwide, Tencent has been replaced by Exxon Mobil. in the top of the rankings based on market capitalisation. When its share price hit a record high in January, the Shenzhen-based company was in the top five along with Apple., Alphabet., Microsoft and Amazon.com.

Tencent returned more than 67 000 percent from its initial public offering through January, but then turned south this year on a run of bad news including a rare drop in profit and a regulatory crackdown on gaming in China. Tencent has tumbled nearly 40 percent in Hong Kong since Jan. 23, and fell for a ninth straight day Wednesday, on track for its worst ever run. It was down 0.9 percent. 

Mitchell Green, Santa Barbara-based founding partner of Lead Edge Capital which manages $1.5 billion of assets, said the selloff could continue as investors panic.

Tencent’s market cap is now $353 billion, while Exxon Mobil’s is $365 billion.

BLOOMBERG

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