PetroChina Becomes the World’s First Trillion Dollar Company

Wow!

PetroChina Co. almost tripled on its first day of trading in Shanghai, becoming the world’s first company to be valued at $1 trillion, more than Exxon Mobil Corp. and General Electric Co. combined.
PetroChina shares rose to 43.96 yuan from the sale price of 16.7 yuan, giving the state-owned oil producer a greater market value than the entire Russian stock market.
The rally makes PetroChina shares four times more expensive than those of Exxon, even though China’s biggest oil producer has a quarter of the revenue. China’s stock market was valued at less than $1.1 trillion before tripling this year and giving the communist nation five of the world’s 10 biggest companies.
PetroChina’s valuation is “an indication of China coming of age and also of its stock market bubble,” said Hugh Young, who oversees $50 billion at Aberdeen Asset Management Asia Ltd. in Singapore.

Everyone made a big deal in February when the Chinese market dropped 9% in one day. Well, the Shanghai Composite has doubled since then.
Check out the stratospheric rise in Chinese search engine, Baidu.com (BIDU). The shares are going for 100 times next year’s earnings.

Posted by Eddy Elfenbein on November 5th, 2007 at 9:43 am

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