Chinese tech giant Tencent continues to transform into an investment leader as the company president said it will keep searching for potential projects worth the financial consideration.
According to the Financial Times, Tencent now has 700 investments internationally, including its recent $150 million investment in Reddit. The Chinese tech company has board positions in over 400 firms across the world.
It is worth noting that Tencent's investments are double that of other Chinese and American tech leaders such as Google, Facebook, and online retail giant, Alibaba. Despite the massive size of its investment portfolio, the company is not slowing down.
"Many people asked us if we are going to reduce our level of investments this year. I tell everyone right now. We will not do this," Tencent President, Martin Lau, said.
Analysts believe that companies that dream of succeeding in the world's biggest markets need Tencent and other firms that have massive investments in various industries. Bain & Co. partner, James Root said, "It's almost impossible to succeed in China retail without Alibaba or Tencent."
CNBC News reported that Tencent shares increased by 10 percent this year. The company experienced a serious beating last year with stock prices falling and competition heightening to a tougher level.
Industry experts said bullish forecasts on the Chinese company's stocks have been impacted by growth opportunities that it has been displaying through its advertising arm and investments that are expected to bear fruit in the future.
Last year, the firm experienced difficulties in its stocks due to tougher regulations on the Chinese video gaming industry. Gaming is one of Tencent's major drivers both in profits and in stocks. The revamped policies resulted in bearish forecasts.
Late last week, it was further reported that the gaming giant will increase its investments in local eSports tournaments. According to Blooloop, the company believes that this sector can help promote its games and other services.
While eSports tournaments are not yet a huge hit, these could pave the way for Tencent and other gaming firms to increase revenue by encouraging players to keep playing the games. The company is also being indirectly backed by local Chinese governments that announced plans to leverage on eSports competitions for economic growth.
RADII China also reported that Tencent has been investing in music streaming. Rumors have emerged over the past months regarding the company's reported bids for Universal. The firm has yet to confirm the reports but some experts believe an investment of this type could further boost growth levels.
