• Tencent is Asia's largest company.

Tencent is Asia's largest company. (Photo : Getty Images)

Reports were released Monday revealing that Tencent is now the largest Asian company and had overtaken Alibaba. Tencent's current market value is at HK$1.99 trillion or $255.8 billion.

Li Chengdong, a Beijing-based independent e-commerce strategy ­analyst, said, "Tencent's market value is based on its current and previous good financial situation, which is driven by the company's core businesses including advertisements, games, e-commerce and financial services."

Like Us on Facebook

Tencent's rise to first place bumped Alibaba to third as the Internet giant only had $250.2 billion. Samsung is second as their market value totaled to $229.4 billion.

The report also showed that Tencent's revenue jumped to 40 percent.

A Beijing industry analyst, Liu Dingding, said, "Tencent has benefited from China's fast-developing mobile Internet industry, which tops the world with 700 million to 800 million users."

The company's big sales leap is also due to the shift in market demand and revenue that is produced by QQ and WeChat.

JPMorgan Chase & Co. released a similar report that showed Tencent's profits are driven by video, digital reading, music, streaming media and Web ads. Major sales are drawn from the company's mobile games.

Liu said, "Tencent's WeChat business also reported a great performance in recent months. The company will continue to boost such businesses as WeChat, cloud computing and big data."

The top Asian company's interim report stated that WeChat, including Chinese version Weixin, there are 806 million monthly active users in the first half of 2016, up 34 percent year-on-year.

Experts believe that the rapid growth of Tencent will become a threat to Alibaba.

Liu said, "Tencent has become the biggest shareholder of JD.com Inc and will join forces with jd.com to further develop its e-commerce business, posing tougher competition for Alibaba."

An expert believes that Tencent's rise in sales is mainly driven by the county's shift to a consumption-based economy.

"China's economic restructuring is happening faster than many have expected," said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd.