Tencent Almost Reached $1 Trillion Valuation Before Slump

Chinese gaming giant Tencent was close to a $1 trillion market value after its biggest surge in over a decade on Monday, but fell short of the milestone after a slump on Tuesday, Bloomberg reports. The company's value is now below $900 billion after a 5.5% loss in Hong Kong on Tuesday.

If Tencent had reached the $1 trillion mark, it would have been the second Chinese company to do so after PetroChina Co, which reached its trillion-dollar valuation in 2007 and has since collapsed. The list of companies worth over $1 trillion is still a short one, comprising of Apple, Amazon, Alphabet, Microsoft, and Saudi Arabian Oil Co.

With offerings ranging from video games to social media to e-commerce, Tencent has long been an investor favorite, though Chinese government crackdowns on the gaming industry and the monopolistic practices Tencent engages in have at times impacted on its stock price.

As the world's largest video game company, Tencent has been relentlessly expanding over the course of 2020, with a number of game-related acquisitions both large and small. Most recently Tencent acquired Don't Starve studio Klei, while it also owns League of Legends developer Riot Games, as well as having stakes in both Epic Games and Activision Blizzard.