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Investing in Tencent

The basis for this statement is to observe the behavior of Tencent share price, which has been on the rise since its entry into the stock market in mid-2004.

But before you can put your money into the stock market by buying Tencent shares, it is necessary that you soak up as much information about this company as possible. For this reason, we have prepared this complete article in which we will give you the keys to know how to buy Tencent. Without further ado, let’s get started.

What is Tencent?

Tencent Holdings Limited is a multinational company of Chinese origin dedicated to the world of telecommunications and was founded in 1998. It has grown by leaps and bounds, becoming the main Internet provider in China. But this is not all because Tencent is the owner of the instant messaging program QQ, a fact that has allowed it to catapult its share price.

Given that its market is Chinese, with broad influences in the Asian communication theater, Tencent went public in 2004, being part of the Hang Sheng index as the basis for being a Constituent Stock.

This multinational captures a set of other companies that allow it to offer an impressive volume of services to the public. This has made it the largest provider of social networks and digital entertainment services in the world. But that’s not all, as they stand out for their investments in the digital marketing sector and the offering of advertising. All this has meant that Tencent’s shares are simply a good investment.

If you are wondering how much Tencent shares are worth you will be surprised to know that they are worth about $75.14 and the value of these shares keeps rising steadily. This is why investing in Tencent is a very good idea.

Why buy Tencent shares?

This is a company that has become a benchmark in the investment, development and innovation of value-added services. To this is added the solid provision of online advertising services. With the sum of these two sectors, Tencent secures 53% of its total revenue. The remainder comes from cloud storage services, paid services, etc.

This is a global company with a broad employee platform. This amounts to almost 63,000 people in the world, which far exceeds its closest competitors. The revaluation process of Tencent’s shares is impressive, just before joining the stock exchange, the shares were worth only about 0.8 Hong Kong dollars, but now they are worth more than 588.

Buying Tencent shares: Advantages

  • Tencent is a company with a steadily increasing share value, which provides stability criteria to its shareholders.
  • Tencent has taken it upon itself to invest in other fairly solid companies, thereby bolstering its stock price. It currently owns shares in Tesla, Epic Games, Riot Games, Activision and more.
  • The increase in the value of Tencent’s shares is largely due to the diversification of sectors that are constantly growing. In this way it has managed to become a leader in the video game market and to have a presence in various sectors such as eCommerce and social networks.
  • Tencent’s social networking and direct messaging services are among the largest and most widely used in the world.
  • In mid-2019, Tencent signed a partnership agreement with Disney to obtain distribution licenses for the Star Wars franchise in China.

Buying Tencent shares: Disadvantages

  • The trade war between China and the United States has affected the normal growth and expansion of Chinese companies, including Tencent.
  • The Covid-19 crisis caused a complete ripple effect of uncertainty in Asian stock markets. However, Tencent has shown amazing signs of recovery.

How to buy Tencent shares

How to buy Tencent stocks has never been easier thanks to the simplicity in which you can find good brokers on the internet. Nowadays, this is the most convenient, simple and advantageous way for people who want to invest their money in Tencent stocks.

Among the main broker options we can offer you are eToro, ActivTrade, Charles Schwab Corporation IQ Option Plus500 and FXCM. Once you have checked the commissions and conditions offered by each of them and you have chosen your preferred one, follow these steps:

  1. Go to the broker’s official website and register.
  2. Complete the forms that are presented to you.
  3. Verify that you have successfully registered through the email that will be sent to you.
  4. Enter the amount of money you wish to spend to buy Tencent shares.
  5. Locate Tencent shares within the Broker’s platform.
  6. Performs the purchase operation.
  7. Wait for confirmation and your shares will be automatically uploaded to your portfolio.

Tips for investing in Tencent shares

  1. It is always wise to keep an eye on market fluctuations so that you can find out how much a Tencent stock is worth in real time. A very useful way is to track the Tencent stock price on NASDAQ.
  2. Tencent’s share price is subject to changes in the stock market, so it is prudent to follow financial, economic and other news and information that may affect Tencent’s performance on the stock market.
  3. Investing in the stock market by buying Tencent stock is a smart way to put your money to work. Just make sure it’s not capital you require in the short term.

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