Hong Kong-listed Tencent's net profit, meanwhile, increased 17% to 27.2 billion yuan, boosted by an increase in value of the company's investments. But while the two companies have been growing in their respective areas -- Alibaba thriving in e-commerce and Tencent commanding video gaming and messaging service with its application, WeChat -- future growth looks increasingly set to overlap. In Wednesday's earnings conference, Tencent disclosed for the first time revenue from a new segment that covers financial technology and business services, which recorded a 44% surge to 21.8 billion yuan, accounting for a quarter of total revenue. Alibaba, which made its debut in cloud computing 10 years ago, said on Wednesday that revenue from its cloud services jumped 76% thanks largely to an increase in average spending per customer. Tencent is the second largest shareholder of Chinese investment bank CICC, followed by Alibaba. For Tencent, the foray into fintech and business services comes as revenue from its core business continues to slow in part due to China's macro and regulatory challenges.
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Jun 25, 2019