Tencent shares hit record high after investment invite from China state rail operator
Tech giant becomes second to be welcomed into CRC share-holding program
Shares of Chinese internet giant Tencent Holdings hit an an all-time high in Hong Kong on Monday following reports that it has become the second company after Alibaba to be invited to invest in China’s state-owned rail operator, says financial news website Caixin.
China Railway Corp. (CRC) welcomed Tencent into its share-holding reform program, which involves securitization and capitalization of assets, on Friday said the state-run newspaper People’s Railway Daily. The invite was reportedly extended by CRC’s General Manager Lu Dongfu.
Investors reacted to the news when trading opened on Monday. Tencent’s stock price rose to HK$288.8 (US$37) per share — the highest level since it’s IPO on the Hong Kong Stock Exchange in 2004. It closed at HK$285.4.