With the sharp rise of Tencents share price, Xiaomas wealth has increased by more than 10 billion yuan. According to Forbes real-time rich list data, Xiaomas wealth has reached 54.8 billion dollars, ranking first in Forbes Chinas rich list, more than 10 billion dollars more than Ma Yun and Huang Zheng.
Ma Huateng reduced his cash holdings by more than 6 billion Hong Kong dollars, but Tencents share price is selling and rising?
From June 9 to 12, Ma Huateng, chairman of Tencent Holdings (0700. HK), reduced his holdings of 9.6478 million shares in Tencent for four consecutive trading days, with an average reduction price between HK $433.4 and HK $450.27 per share, totaling about HK $4269.9 million in cash. After the reduction, Ma Huatengs shareholding ratio dropped from 8.53% to 8.42%.
This is not the first time Ma Huateng has reduced its stake in Tencent. In January this year, Ma Huateng reduced 5 million shares in four consecutive trading days, cashing out nearly 2 billion Hong Kong dollars. In addition, Ma Huateng has cashed in more than 6 billion Hong Kong dollars this year. According to statistics, since Tencent went public in 2004, Ma Huateng has reduced his holdings no less than 40 times.
It is worth noting that the two divestments this year have kept Tencents shares soaring. From January 14 to 17 this year, Ma Huateng sold 5 million shares in total. Tencents share price surged in February this year, reaching a stage high of HK $418.83. From June 9 to 12, Ma Huateng reduced his holding for the second time in the year, which set Tencents share price at a record high today.
In theory, the more frequently executives cash out, the more negative the impact on the stock price. However, Tencent is an exception. It is widely spread that Tencents share price will rise sharply every time Xiaoma reduces his holding.
Why Tencent set a new record?
Some of the reasons are as follows:
1) Tencent, as the king of Hong Kong stocks, not only did not suffer from the performance during the epidemic, but also benefited from online technology. The first quarters performance was surprising, and the second quarter was probably surprising. This years performance should not be too bad. In 2020, Tencents revenue was 108.065 billion, up 26% year-on-year; its net profit (non IFRS) was 27.079 billion, up 29% year-on-year, higher than the market expectation.
2) Tencent, which relies on 1 / 3 of its revenue, has been reborn after the release of the game number. In May 2020, Tencents pubgmobile and peace elite attracted more than 226 million US dollars globally, an increase of 41% over the same period last year, ranking the top of the best-selling list of mobile games in the world.
3) With the advent of the era of global water release, all countries have entered the era of negative interest rates, especially in the United States, where there is no bottom line easing, releasing $6 trillion of water (about half of Chinas GDP in 2019). Since the outbreak, China has twice released 95 trillion yuan, which has shrunk to 500 billion yuan and released 450 billion yuan of water. Under the background of the flood, the global capital flows into the core assets of the stock market, especially under the premise of no speculation in housing and housing, all the capital flows into Maotai, meituan, Tencent, pharmaceutical stocks, pinduoduo, Jingdong, Netease and so on.
4) The brokers sang well to Tencents group, and the investment bank gave a target price of HK $640. If calculated at HK $642, Tencent will become a 6 trillion giant (equivalent to US $790 billion). Even if calculated at HK $500, Tencents market value will reach HK $4.8 trillion at that time, which is expected to exceed Alis volume.
JPMorgan also recently raised Tencents target price to HK $600. This is mainly because Tencent announced the game product line and launch schedule, which will enter the strongest game launch cycle since 2008, and is expected to drive the profit growth momentum in 2020 and 2021, while the relevant factors are not reflected in the stock price.
Extended reading star shine global! Beidou-3 global system closing star launched successfully! Abandon Intel and learn Android. This apple is really delicious! Sure! Apple computer will use self-developed chips to break the $360 mark. This is from Qiao JunJing, editor in charge of 21st century economic report_ NBJ11279