Andrew Ness, portfolio manager of Templeton Emerging Markets Investment Trust (TEMIT), explains why he invests in Chinese internet services giant Tencent (HKG:700).
A leading internet services provider in China, Tencent has a major presence in online games, non-gaming value-added services such as the provision of video, music and live-streaming, digital advertising, FinTech and other businesses such as cloud computing.
Unlike many companies around the world, Tencent’s key businesses (online games and digital content) benefited from people staying at home for longer amid government-imposed lockdowns. The company also took the opportunity to invest in new areas, such as Tencent Meeting (similar to Zoom), which was offered for free to all users and became the most popular online conference tool in China.