Investing.com - Tencent Holdings Ltd (HK:0700) climbed 1.26% in morning trade in Hong Kong Monday to HKD354.20 following news of a possible link up with Google (NASDAQ:GOOGL).
Google is in discussion with the Chinese internet giant, best known for its ubiquitous WeChat messenger and successful WeChat Pay systems, to offer its cloud services in China, Bloomberg reported on Monday.
Tencent has its own cloud offering in China – Tencent Kubernetes Engine – and existing partnerships with companies like Cisco Systems (NASDAQ:CSCO), Nvidia Corp and Deloitte. Tencent’s cloud service is based on Google technology.
Blommberg added that Tencent has been affected by the widespread drops in the Hong Kong and Chinese market amid the recent trade war with the U.S., and is currently trading at lows it has not seen since November.
Over the past year, Tencent has outpaced the industry as a whole with a return on equity (ROE) of 27.2% compared with an industry average of around 9%.