What is Tencent, and how do I trade it?

What is Tencent?

Founded in 1998 by Ma Huateng, Zhang Zhidong, Xu Chenye, Charles Chen, and Zeng Liqing, Tencent is a multinational technology and entertainment conglomerate. Headquartered in Shenzhen, China, Tencent operates across a range of industries, from social media and gaming to financial technology, cloud computing, and artificial intelligence (AI).

Tencent developed and owns WeChat – one of the most widely used apps globally – which combines messaging, social networking, and payment services. The company also operates Tencent Games, which develops and publishes popular titles such as Honor of Kings. Tencent’s investment portfolio includes stakes in Epic Games, Tesla, and Activision Blizzard.

In addition to digital entertainment, Tencent has a significant presence in the financial sector, offering digital payment solutions via WeChat Pay and QQ Wallet.

What is Tencent’s share price history?

Tencent’s share price history began on the Hong Kong Stock Exchange (HKEX) on 16 June 2004, listed under the ticker symbol ‘0700’. The company’s initial public offering (IPO) was priced at HK$3.70 per share. Following a 5-for-1 stock split on 20 May 2014, the adjusted IPO price is equivalent to HK$0.74 per share today.

During the early years following its IPO, Tencent’s share price experienced steady growth as the company expanded its footprint in social media and online gaming. The launch of WeChat in 2011, which rapidly became one of China’s most popular apps, was a turning point that contributed to sustained upward momentum in the stock price.

Tencent shares surged during the global tech boom of 2017, with strong growth in its gaming division and investments in high-profile companies like Tesla and Spotify. This momentum saw its stock price hit a record high of HK$405.24 in November 2017, driven by growing revenues and trader optimism around its market dominance.

In 2018, regulatory tightening in China’s gaming sector, including a freeze on new game approvals, weighed heavily on the share price. This regulatory environment continued to create headwinds in subsequent years, with geopolitical tensions and crackdowns on technology firms in 2021 leading to further declines.

Covid-19

The pandemic era of 2020 represented a period of recovery for Tencent. As people turned to digital entertainment and online services, Tencent’s price rose, hitting an all-time high of HK $714.90 in February 2021. But the momentum did not last, as tightening regulations in China’s tech sector, coupled with global economic uncertainty, contributed to increased volatility in 2022.

The Chinese government’s decision to approve new gaming licenses in late 2022 marked a turning point, boosting Tencent’s revenue from its core gaming division. Despite these positives, macroeconomic challenges and weak consumer demand in China slowed Tencent’s stock price recovery.

By 2024, Tencent’s share price saw renewed growth as its overseas gaming revenue surged, influenced by successful global launches and strategic investments in AI and cloud computing.

Tencent executed its largest single-day share buyback in January 2025, purchasing 4.05 million shares for $193.3 million. This helped to stabilise the stock amid broader market headwinds. However, the US Department of Defense added Tencent to its list of entities associated with the Chinese military in January 2025, adding fresh uncertainty.

What factors might affect the Tencent live stock price?

Tencent’s live stock price may be influenced by a range of unique and sector-specific factors, including market sentiment, macroeconomic conditions, and regulatory developments.

Regulatory developments in China and abroad

As one of the largest Chinese companies, Tencent operates under strict regulatory scrutiny. 

Positive regulatory developments can boost trader confidence and lead to price increases, such as when the Chinese government ended its freeze on gaming licenses in 2022 – Tencent’s stock price increased.

However, stricter regulations or geopolitical tensions can weigh on the stock. For instance, Tencent was added to the US Department of Defense's list of ‘Chinese military companies’ in January 2025, which led to a decrease in its stock price.

Market sentiment and global tech trends

Tencent’s share price may rise during periods of optimism, as seen during the pandemic-driven demand for digital services. Advancements in AI, cloud computing, or gaming technology could also increase trader interest.

Meanwhile, market downturns or shifts in sentiment toward Chinese equities might have the opposite effect. For example, uncertainty around US-China relations has historically led to Tencent's stock price decreasing.

Economic conditions in China

Chinese Economic growth can drive higher spending on Tencent’s services. When China’s economy rebounded post-lockdowns, Tencent’s gaming and fintech revenue grew significantly, reflecting stronger consumer activity.

Conversely, economic slowdowns or property sector troubles in China can limit disposable income and trader confidence, potentially influencing Tencent’s share price. Worsening conditions in China could pose challenges to the company’s growth trajectory.

Performance of Tencent’s core businesses

Strong quarterly earnings, fuelled by hit game releases or growth in WeChat Pay usage, can lead to share price gains. For example, better-than-expected earnings in 2024 driven by overseas gaming revenue led to a stock price increase.

But weaker-than-expected results or challenges in key areas can dampen sentiment, such as delays in game approvals or slower adoption of its AI initiatives.

Competitor activity and industry dynamics

Tencent operates in competitive markets, including gaming, social media, and fintech. Positive developments, such as Tencent’s investments in AI startups or potential acquisitions like Ubisoft, can enhance its competitive edge, boosting its stock price.

But increased competition from domestic and international players could eat up Tencent’s market share. Rivalry with platforms like ByteDance or the emergence of alternative payment solutions may divert users and revenue.

Trader sentiment and buybacks

In response to the US Department of Defense's designation, Tencent executed its largest share buyback since 2006 in January 2025, repurchasing approximately 4.05 million shares for $193.3 million. This move aimed to stabilise Tencent's stock price following its designation by the US as a Chinese military company.

If Tencent’s buybacks are perceived as a reaction to declining fundamentals rather than a sign of confidence, traders may remain cautious, limiting their positive impact.

Monitoring the company’s activity can help you to keep an eye out for the effects of any fundamental or technical events that may affect short-term movements in the share price.

You can follow the Tencent stock performance with our Tencent share price chart.

Is Tencent an AI stock?

Tencent is not classified as a ‘pure-play’ AI stock like C3.ai, but artificial intelligence (AI) is prevalent across the business. The Tencent AI Lab, established in 2016, focuses on areas such as machine learning, computer vision, speech recognition, natural language processing (NLP). These technologies are integral to its products, such as WeChat’s services and AI-powered in-game features.

In gaming, Tencent uses AI to develop intelligent non-player characters (NPCs), create three-dimensional backgrounds and scenes, conduct development testing, and design game missions and scenarios to enhance user experiences. Tencent also employs AI for content moderation, personalised recommendations, chatbot development, and improving user engagement on its social media platforms.

Tencent’s cloud computing division – Tencent Cloud – provides AI-driven solutions for enterprises, including medical image analysis and predictive analytics for various industries.

Learn more about AI shares with our comprehensive AI stock trading guide.

What are Tencent’s stock trading hours?

Tencent’s stock market trading hours are the same as the Frankfurt Stock Exchange – which is open Monday to Friday – where it's listed under the symbol, ‘NNND’:

Frankfurt Stock Exchange

• In winter, from 8:00am to 4:30pm UTC.

• In summer, from 7:00am to 3:30pm UTC.

Additionally, Tencent is traded on the Hong Kong Stock Exchange – which is open Monday to Friday – where it's listed under the symbol, ‘0700’.

Hong Kong Stock Exchange*

• Morning session, 1:30 am to 4:00 am UTC

• Afternoon session, 5:00 am to 8:00 am UTC

For more details on trading hours, visit our stock market trading hours page.

*Hong Kong does not observe daylight saving time.

How to trade Tencent shares with CFDs

If you want to take a position on Tencent shares, you have two options. First, you can buy physical shares in the company through the exchange on which it’s listed. In this case, investing in Tencent stocks means you will own a share, or shares, in the company. This can be considered a long-term investment, as you’re hoping for the price to rise over time.

Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying Tencent stock market price, and speculate on its price movements without actually owning the asset. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

CFD trading is unlike traditional investing. With CFDs, you can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). CFDs are considered a short-term trade, as they tend to be used within shorter timeframes.

Another key difference between buying physical Tencent shares and trading through a derivative is the leverage that can be employed with the latter. CFDs are traded on margin, which means that a trader can get exposure to larger positions with a relatively small outlay. In this scenario, both your profits and losses are amplified, making such trading risky. You can learn how to trade shares in our comprehensive guide to shares trading.

To trade Tencent stock CFDs with us, just sign up for a Capital.com account, and once you’re verified, you can use our advanced web platform or download our intuitive yet easy-to-use app. It’ll take just a few minutes to get started and access the world’s most-traded markets.

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