What Is Tencent ADR (TCEHY)? A Complete Guide to the Differences with Tencent Hong Kong Stock (00700)

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Many investors focusing on Tencent encounter two tickers: TCEHY and 00700. This can be confusing.

In simple terms, Tencent ADR (TCEHY) is the depositary receipt for Tencent traded on the US over-the-counter market. It directly represents the original Tencent stock listed on the Hong Kong Exchange (00700).

Understanding the essential differences and price linkage between these two securities is the foundation for making informed investment decisions. This article aims to help investors clearly distinguish between them and provide factual basis for investment choices.

Key Takeaways

• Tencent Hong Kong stock (00700) is Tencent’s original shares listed in Hong Kong, representing company ownership.
• Tencent ADR (TCEHY) is a depositary receipt for Tencent stock in the US market, facilitating trading for American investors.
• 1 TCEHY represents 1 share of 00700, but they differ in trading market, currency, and trading hours.
• 00700 has higher liquidity and stronger price leadership; TCEHY’s price follows 00700 fluctuations.
• Holding 00700 provides direct voting rights, while TCEHY typically does not, and ADR dividends deduct custody fees.

TCEHY vs. 00700: Definitions and Nature

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To understand the differences, first clarify their respective definitions and nature. One is the original shares traded in Hong Kong, the other is a receipt created for convenience of US investors.

Tencent Hong Kong Stock (00700): The Company’s Original Shares

Tencent Hong Kong stock (ticker: 00700) is the original shares issued by Tencent Holdings Limited on the Hong Kong Stock Exchange (HKEX). Investors purchasing 00700 directly acquire a portion of company ownership and become registered shareholders. These shares are the direct embodiment of Tencent’s value. As of December 2025, Tencent’s total issued shares are approximately 9.081 billion, forming its public market capitalization.

Tencent ADR (TCEHY): US Market Depositary Receipt

Tencent ADR (ticker: TCEHY) is a different financial instrument. Its full name is American Depositary Receipt (ADR).

What is a Depositary Receipt? A depositary receipt is a transferable certificate issued by a US depositary bank. It represents a specific number of shares in a non-US company (here, Tencent). ADRs allow US investors to buy and sell foreign company stocks as easily as domestic ones.

TCEHY trades on the US over-the-counter (OTC) market, providing a channel for US investors unable to directly invest in Hong Kong stocks to access Tencent.

Conversion Relationship: How 1 TCEHY Represents 1 Hong Kong Share

TCEHY is not created out of thin air; it has a clear conversion relationship with Tencent Hong Kong stock (00700). The US depositary bank first purchases and holds a certain number of Tencent Hong Kong shares, then issues corresponding depositary receipts in the US market.

According to official settings, the conversion ratio between TCEHY and 00700 is as follows:

This table clearly shows that 1 TCEHY represents 1 Tencent Hong Kong share (00700). Therefore, holding TCEHY is economically equivalent to indirectly holding the same number of Tencent shares. Though different trading instruments, they are backed by identical underlying assets.

Core Differences: One Chart to Understand the Main Distinctions

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Although TCEHY and 00700 are anchored to the same company, as different financial instruments, they have significant trading-level differences. Investors can choose the more suitable method based on their situation.

For easy understanding, the table below summarizes the most core differences:

Next, we will explain these core differences in detail.

Difference 1: Trading Market, Currency, and Hours

1. Trading Market and Ticker Tencent Hong Kong stock’s primary venue is the Hong Kong Stock Exchange, with ticker 00700. This is the main global trading place for Tencent stock. Tencent ADR trades on the US over-the-counter market (Pink Sheets Market), with ticker TCEHY. The OTC market has looser regulation compared to NYSE or Nasdaq, mainly serving securities not fully meeting main board listing requirements.

2. Trading Currency This is a very intuitive difference.

• Purchasing 00700 requires Hong Kong Dollars (HKD).
• Purchasing TCEHY uses US Dollars (USD).

💡 Investment Tip For investors, this means needing a brokerage account capable of trading the respective currency. For example, some emerging digital finance apps (such as Biyapay) offer convenient solutions, allowing users to manage and convert USD, HKD, and other assets on one platform, flexibly investing across markets.

3. Trading Hours Due to time zone differences, their trading hours are completely offset, achieving nearly 24-hour relay for Tencent’s value.

• Hong Kong Stock 00700 Trading Hours (Hong Kong Time) HKEX trading hours cover Asian business hours.

  Session	Time (Hong Kong Time)
  Auction Session (Pre-open)	09:00 - 09:30
  Continuous Trading (Morning)	09:30 - 12:00
  Break	12:00 - 13:00
  Continuous Trading (Afternoon)	13:00 - 16:00

• ADR TCEHY Trading Hours (US Eastern Time) TCEHY trading hours correspond to North American sessions. Standard hours are US Eastern Time 9:30 AM to 4:00 PM, without pre-market or after-hours trading.

Difference 2: Liquidity and Price Leadership

1. Liquidity: Clear Primary-Secondary Distinction Liquidity determines ease of buying/selling and trading costs. Here, 00700 has absolute advantage. As the primary market for Tencent stock, 00700 has enormous daily volume, usually over 16 million shares, ensuring investors can execute quickly at fair prices.

In contrast, TCEHY as a derivative has far lower liquidity. Smaller volume means potentially wider bid-ask spreads, and large trades may impact price.

2. Price Leadership: Hong Kong Stock is the “Anchor” This is the core of their relationship. Hong Kong stock 00700 price leads, and TCEHY price closely follows. Since 1 TCEHY represents 1 share of 00700, theoretically their prices should align after currency conversion.

We can use a simple formula: TCEHY Theoretical Price (USD) ≈ 00700 Price (HKD) × USD/HKD Real-Time Rate

After Hong Kong market close, TCEHY price reflects global news and sentiment during US hours, but when Hong Kong opens next day, TCEHY price quickly converges to 00700’s open. Thus, the Hong Kong market is Tencent stock’s true “price discovery” center.

Difference 3: Shareholder Rights: Are Both Tencent Stock?

Economically, both represent partial ownership in Tencent. But legally and in shareholder rights, there are subtle but important differences.

• Dividend Receipt Both receive Tencent dividends, but processes differ:
  • 00700 Holders: Receive HKD dividends directly from the company or broker.
  • TCEHY Holders: Dividends are collected by the depositary bank (usually a major licensed bank), converted to USD, then distributed to ADR holders. The bank deducts certain custody or dividend processing fees. For example, some banks charge management fees deducted from investor returns. Cross-border transfers may also incur wire-like costs (e.g., about $33).
• Voting Rights This is one of the most essential differences.
  • 00700 Holders: As direct registered shareholders, you have rights to attend general meetings and vote on major matters.
  • TCEHY Holders: Holding depositary receipts rather than original shares, usually no direct voting rights. Voting rights belong to the depositary bank holding original shares. Though theoretically the bank can solicit ADR holder opinions, in practice, especially for OTC ADRs, this is very rare.

Thus, if investors highly value direct shareholder voice and governance participation, holding 00700 is more direct.

Summary: How to Vividly Understand the Two?

After the detailed analysis above, we can use a vivid metaphor to summarize the relationship between TCEHY and 00700, helping investors build intuitive understanding.

A Metaphor: Genuine Product vs. Authorized Overseas Proxy Receipt

Think of Tencent Hong Kong stock (00700) as the “genuine product” sold at brand counters. Investors buy directly, obtaining the product itself with full rights.

Tencent ADR (TCEHY) is more like an “official authorized overseas proxy receipt”. This receipt can also redeem the genuine product, but with different purchase channel and holding method. It provides convenience for overseas customers unable to visit the “counter.” However, this “proxy” process incurs extra costs, such as the depositary bank charging certain custody fees, deducted from investor dividend returns.

Same Underlying Investment, Different Trading Tools

The core of the metaphor is that regardless of choice, investors ultimately invest in Tencent the company. Both securities’ value derives from Tencent’s business performance and future growth potential.

They are two trading tools designed to meet needs of different market investors, but share the same company’s value.

Choosing 00700 or TCEHY essentially means choosing different trading platforms and currencies. For US investors unable to directly open Hong Kong stock accounts, TCEHY provides a convenient USD channel to invest in Tencent.

Core Differences Recap: Location, Currency, Liquidity

Finally, recap the three most key differences to solidify understanding:

• Trading Location and Risk: 00700 trades on the strictly regulated Hong Kong Stock Exchange. TCEHY trades on the US over-the-counter (OTC) market, with relatively looser disclosure requirements and correspondingly higher risk.
• Trading Currency and Cost: 00700 priced in HKD, TCEHY in USD. For US investors, trading TCEHY is convenient but exposes them to USD/HKD exchange rate fluctuations.
• Liquidity and Leadership: As the primary market, 00700 has extremely high liquidity and is Tencent stock’s true price discovery center. TCEHY has smaller volume and lower liquidity, with large trades potentially facing execution challenges.

Understanding these differences helps investors choose based on account location, trading habits, and risk preference.

TCEHY and 00700 are two trading tools existing to meet different market investor needs, sharing the same company’s value. Choosing one mainly depends on the investor’s account location, trading habits, and preference for different market rules.

Regardless of form, the investment ultimately bets on Tencent’s long-term development. The company’s future value depends on its product innovation capability (such as approximately $6.8 billion R&D investment in 2022) and ability to handle industry competition, regulatory changes, and other risks.

FAQ

Do both pay dividends?

Yes, both pay dividends. 00700 holders receive HKD dividends. TCEHY holders receive USD dividends converted through the depositary bank.

Note that the depositary bank may deduct certain custody fees from TCEHY dividends.

Why do US investors choose TCEHY?

For some US investors, trading TCEHY is more convenient. They can buy directly with their USD brokerage accounts without opening a Hong Kong stock account or converting currency. This simplifies the investment process.

How does exchange rate affect TCEHY price?

TCEHY price is affected by USD/HKD exchange rate. Even if 00700 price remains unchanged, if USD appreciates (HKD relatively depreciates), TCEHY’s USD price will fall accordingly.

Is trading TCEHY riskier?

TCEHY trades on the US over-the-counter (OTC) market, with typically lower liquidity than 00700 on the Hong Kong Stock Exchange. Lower liquidity and relatively looser regulation may bring higher trading risks.