CGTN | 20-Jun-2020
The pandemic has created an unlikely disconnect between the real economy and the stock market, with some companies, especially those whose business models are more suitable to lifestyles under lockdowns, leading the stock market growth worldwide. They include many Chinese companies from online gaming, e-commerce, pharmaceutical to food industries.
The top five companies that witnessed the biggest equity value increases are Amazon, Microsoft, Apple, Tesla, and China’s gaming giant Tencent, with a 108.4-billion-U.S.-dollar increase, according to a list compiled by the Financial Times yesterday.
Tencent’s business sections all enjoyed major growth during the first quarter of this year, during the first half of the first quarter, when China imposed lockdown measures across the country. With over 1.3 billion Chinese people isolated at home, they turned to the online world Tencent has created. The company’s online gaming revenues rose by 31 percent in the first quarter, video subscribers rose to 112 million, and video platform’s subscribers jumped to 43 million, and Tencent’s flagship social media app WeChat saw its users hit 1.2 billion.
Chinese companies from e-commerce, delivery and pharmaceutical industries also experienced major equity value jump during the pandemic.
Pinduoduo, the Chinese e-commerce platform focusing on lower price range products ranked 11th on the Financial Times list of companies gained biggest equity values.
JD.com, another China’s e-commerce giant that just finished the secondary listing in Hong Kong on Thursday, ranked 16th on the list. Alibaba ranked 22nd.
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