Dark clouds hover over Tencent and Ping An, as they move beyond their core businesses
Investors may just have found the reason they need to keep on pushing two of Hong Kong’s best-performing blue-chips higher. After more than doubling in 2017, shares of Tencent and Ping An Insurance have lost momentum. By now, neither is cheap. Tencent is valued at 36 times estimated 2018 earnings — 56% more expensive than Facebook. Ping An’s Hong Kong stock, meanwhile, is trading at a rare premium to its yuan-denominated shares in Shanghai, a sign of global investors’ enthusiasm. But there are plenty of dark clouds hovering. Investors may downgrade Tencent from a technology to a media firm, as they awaken to the notion that just one scandal — Cambridge Analytica in Facebook’s case — can sink a social media giant’s valuation. Meanwhile, insurers may be asked to become buyers of last resort in the event of a bond rout, now that the China Insurance Regulatory Commission is the subject of a hostile takeover by the banking regulator. Ping An and Tencent have moved well beyond their core ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.