CHINA: Tencent Music Entertainment Group (TME), a Chinese corporation, announced that its shares would begin trading in Hong Kong on the following Wednesday, following the completion of a secondary listing by introduction.
The company announced that New York would continue to be its main listing location and that its stock in the United States and Hong Kong would be completely fungible. The stock code 1698 will be used to trade its Hong Kong shares.
Tencent Music is the most recent among numerous Chinese companies with U.S. listings to choose a secondary listing in Hong Kong to avoid being delisted in New York due to a disagreement between Washington and Beijing over access to auditing files.
After a decade-long standoff, the two sides have reached a settlement, and American authorities will soon arrive in Hong Kong to assess Chinese companies listed on the American market.
While some Chinese companies with U.S. listings have chosen to raise more money in conjunction with their Hong Kong debuts, others, like Nio Inc (9866 HK), have chosen to list by introduction, which involves no new capital raising or the issuance of new shares.
The company announced the second quarter, which concluded on June 30, saw an 18% increase in Tencent Music’s music subscription revenue in August.
Its shares have fallen 30% so far this year, hurt by a bearish feeling toward Chinese technology equities and a governmental crackdown on the industry, giving the business a market worth of $8.1 billion.