Tencent’s Stock Gains in Hong Kong On Positive News

Tencent Holdings Ltd (HKG:700)’s stock gained 1.445 percent in today’s trading at the Hong Kong Stock Exchange on news that it is in talks for a US$1.5 billion syndicated loan to secure funds for future acquisitions and other expenses.

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Shares of the Chinese investment holding company were up 2.2 points to trade at HKG154.50 apiece at the close. It reached a mid-day high of 155 and a low of 151.10 after opening at 152.50.

According to a Wall Street Journal report, Tencent’s loan is being arranged by five banks — Australia & New Zealand Banking Group, Bank of China, Citigroup, HSBC Holdings and Mizuho Financial Group—according to the people.

Investors were also bullish on Tencent after UBS Global Research forecast a 125 percent year-on-year growth for its video business, due to rapid growth in mobile video traffic, and more exclusive contents.

Tencent also announced today that it will distributed James Bond films and other coming movies in China in partnership with two Hollywood studios.

Tencent (HKG:700) and its subsidiaries are principally engaged in the provision of Internet and mobile value-added services (VAS), online advertising services and eCommerce transactions services to users in the People’s Republic of China.

The Company operates in four segments: VAS, Online advertising, eCommerce transactions, and Others.

It also engages in the provision of trademark licensing, software development services and sales of software. Its subsidiaries includes Tencent Computer, Tencent Technology, Shiji Kaixuan, Tencent Cyber (Tianjin) Company Limited (Cyber Tianjin), Tencent Asset Management Limited, among others. – BusinessNewsAsia.com

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