China's internet giant Tencent (TCEHY) saw shares surge today in Hong Kong as investors absorbed its stellar second-quarter results released after the market close yesterday.

Shares were up more than 5% in trading on Thursday and are up more than 30% on the year.

Tencent has now overtaken Alibaba (BABA - Get Report) to become China's most valuable technology company. Data compiled by IG show Tencent was at HK$1.9 trillion ($246.35 billion), compared with Alibaba's market cap of $242.04 billion, CNBC reported.

Yesterday, the company announced profits jumped 47% as revenue grew across the board and the company reinforced its offerings.

The Shenzhen, China-based holding company, which owns media, entertainment and mobile phone service businesses, said profit attributable to shareholders in the three months ended June 30 advanced 47% year on year to 10.7 billion renminbi ($1.6 billion). Consequently, diluted earnings per share came to Rmb1.133, up from Rmb0.778 a year earlier.

Revenue from online games rose 32% backed by role playing games and interactive games between live players on smartphones. Meanwhile, revenue from the social network business jumped 57%, thanks to growth in subscription services for video, music and literature. Meanwhile, revenue from online advertising increased 60% backed by growth in ad revenues from its mobile news and video services.

The company has in recent months focused on developing its online games and digital content businesses. In June it announced the acquisition of Finnish game maker Supercell for about $10.2 billion and in July it said it would acquire a controlling stake in China's leading music streaming company China Music Corp. to merge with its QQ Music.

At the profit level, Ebitda rose 52%. Capital expenditure fell 47%, while free cash flow rose 80%.

Mariko Iwasaki contributed to this report.