Chinese Internet giant Tencent has topped $200 billion in market capitalization for the first time, surpassing entrenched U.S. tech companies Amazon, IBM and Oracle in size.

Reuters reports that the firm rose 5.38 percent to close at HK$170.50 ($22) in trading in Hong Kong, giving it a market valuation of $206 billion on Monday. This is compared to a market cap of $190 billion for Oracle's, $178 billion for Amazon, and IBM's $161 billion.

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Since the beginning of the year, Tencent's shares have jumped 52 percent, pumping up its market cap close to rival Alibaba ($210 billion) and Facebook ($230 billion).

Reuters reports that the as the company achieved the milestone, the Hong Kong stock market hit a seven-year high on Monday. China also recently allowed mutual funds to buy stocks on the Hang Seng Index under the Shanghai-Hong Kong Stock Connect scheme, which helped spur Tencent's shares upward.

However, it wasn't long after the company exceeded the $200 billion mark that it suffered a setback. Company Chairman Ma Huateng sold some of his shares, sending the stock down 5.5 percent on the Hang Seng in Hong Kong.

Ma, who is the third richest person in China, reduced his stake to 9.65 percent from 9.86 percent for a total of $415 million, according to filings to the Hong Kong stock exchange Monday. Bloomberg reports that investors followed suit when Ma sold the shares, which have skyrocketed 62 percent in the 12 months through Monday,

"If the chairman of a company starts selling, it probably means the market could start taking a beating," Louis Tse, a Hong Kong-based director of VC Brokerage Ltd., told Bloomberg News on Tuesday.  "The market has risen so much, it was expected to come down at some point."

Hong Kong's Hang Seng index has risen 17 percent so far this year, hitting it's highest point since 2007. An unexpected decline in Chinese exports caused speculation that authorities will increase stimulus to spur economic growth.

Bloomberg reports that Ma sold 10 million shares of Tencent on Thursday at an average of HK$162.26 each, and another 10 million shares on Friday at an average price of HK$159.81 each, according to filings to the Hong Kong stock exchange.

TagsTencent Surpasses Mighty Amazon in Size, Ma Huateng, Oracle, Amazon, Hang Seng