Alibaba's Market Value Has Shrunk, And Tencent Has Become Asia's Largest Internet Company.

As report goes, Alibaba Group (New York Stock Exchange Stock Code: BABA) share price has fallen for ten consecutive months, resulting in the market value evaporating 140 billion 700 million dollars, thus giving the title of Asia's largest Internet Co to Tencent (Hongkong). Stock Exchange Stock Code: 0700).

In the regular trading on Tuesday on the New York stock exchange, Alibaba group's share price fell 4.7%, to close at $60.91, and its market value was $153 billion, which is the first time that the group's market value has been overtaken by Tencent since its leadership in September of 2014 by the chairman Ma Yun in the US IPO. Alibaba group's business relies on the expenditure of Chinese consumers. The group's 83% revenue comes from the Chinese market.

At the same time, Tencent has purchased its content from Hollywood for its video platform, invested in cloud computing and on-demand mobile services, and formed a partnership with Jingdong (NASDAQ: JD). Online retailers Cooperation has increased the competitive pressure faced by Alibaba group. Although China's stock market has dropped in the past three months, Tencent's stock price has ignored this decline and has risen 15% in the Hongkong stock exchange so far this year. According to Tuesday's closing price, Tencent's market value reached HK $1 trillion and 220 billion (US $156 billion 900 million). The Chinese government has taken measures to rescue the market. Last month, the people's Bank of China announced the fifth rate cut since November last year. In addition, the authorities began to intervene in the stock market again, seeking to prevent the stock market from continuing to fall. This downward trend has led to the evaporation of trillions of dollars in the market value of the mainland stock market. Affected by these measures, the Hongkong stock market has risen.

In contrast, Alibaba group's share price is showing the opposite trend, because investors' optimism about their prospects has been overwhelmed by the slowdown in economic growth. Alibaba group was listed on IPO in September 19th last year, and shares rose 38% on the first day of listing. Since the launch of IPO, Alibaba has suffered many obstacles, including slowing sales growth, criticism of Chinese business practices and prosecution in the United States. In August 24th, Alibaba group shares fell for the first time in the IPO issue price of $68 A share, prompting the group's chief executive, Zhang Yong, to urge employees not to focus on stock prices but instead to focus on long-term prospects. The Alibaba group's electric business carpet covers China's urban areas. Now it hopes to expand its business to rural areas and overseas markets, especially in Russia and Brazil. Ma Yun said in March this year that he hoped that more than half of the group's revenue would come from overseas businesses.

Meanwhile, Alibaba group is trying to help Chinese shoppers to buy brands in the US and Europe more easily. Tencent's instant messaging service shows that its quarterly earnings have hit a record high, according to Tencent's August earnings report. By contrast, Alibaba group's revenue in the past four quarters has failed to reach analysts' expectations in the two quarter, and its sales growth has reached its lowest level in at least three years.

Tencent is using WeChat and QQ's more than 1 billion users to develop its business, hoping to find new ways to make money through advertising, payment services and health care applications. In the last quarter, Tencent's advertising revenue has nearly doubled to 4 billion 100 million yuan, mainly due to the promotion of high priced video advertising associated with popular content such as "China good voice" and NBA basketball tournament.