Investment Analysis about China’s IT Company—The Tencent Holdings Limited

As one of the most huge and potential markets in the world, China has a series of powerful IT companies, such as Tencent, Alibaba, and Xiaomi and so on. Based on such a market and huge population, these companies have very good future in developing and making profits. As a result, studying on them becomes more and more important for the market to know how these companies develop and how their stocks change. This paper focuses on the developing trend of Tencent and tries to provide a valuable investment suggestion for the market. At last, this paper finds that Tencent, as one of the biggest IT companies in China, has very great developing potential with its achievements in the game industry. The main contributions of this paper are that it has found future developing points of Tencent in the game industry and that it points out a new developing power in IT industry, the Entertainment power. The main limitation of this paper is that it has only checked one IT company, the Tencent, instead of comparing different companies to show how Tencent gets benefits from game industry.