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Tencent Music Has Lackluster Debut in Hong Kong

Tencent Music Hong Kong

Photo Credit: Ruslan Bardash

Chinas Tencent Music Entertainment Group opened on the Hong Kong currency markets yesterday to a lackluster debut.

Tencent Music made its debut on the Hong Kong exchange after announcing the other day that NY would remain its primary listing. The listing was completed by introduction, meaning no new shares or capital were raised in the transaction. One US-listed share represents two of its Hong Kong shares. The opening price for the stock fell flat at $18 HK dollars ($2.29) and continued its slide on its second day.

Tencent Musics stock is down 33% to date in 2022 as a wave of negative sentiment towards Chinese tech companies takes hold. Tencent is merely among the latest companies to decide on a second listing on the Hong Kong stock market over the risk of being delisted in NY. The kerfuffle has ended auditors that didnt give U.S. inspectors a peek at the books of Chinese businesses. To be able to stick to U.S. stock exchanges, Chinese businesses must play along.

On August 26, 2022, the China Securities Regulatory Commission and the U.S. Securities and Exchange Commission (SEC) decided on audit protocols so these inspectors can do their jobs. U.S. officials are actually in Hong Kong to start out reviewing U.S. listed companiesincluding Tencent Music. Tencent Music includes a market capitalization of around $7.76 billion.

These audits are anticipated to take up to two-and-a-half months to perform. Companies which are likely to see a direct effect include Alibaba, Tencent Holdings, Weibo, Baidu, and NetEase. Tencent Music reported a 25% year-over-year jump in paid subscribers because of its Q2 2022. NetEases Cloud Music can be listed on the Hong Kong stock market.

We have been proud to celebrate our successful listing on the primary Board of the stock market of Hong Kong, says Cussion Pang, Executive Chairman of Tencent Music Entertainment. We have been truly grateful to your users to be section of our ecosystem and our journey, our employees to be our greatest asset, our partners and investors for his or her rely upon us, and most of anyone who has supported us to make this achievement possible.

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