Tencent Music chooses to start next week with a Hong Kong listing via 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 will be used to trade its Hong Kong shares.
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China's Tencent Music Entertainment Group announced that its shares will begin trading in Hong Kong on the following Wednesday following 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 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 in order to avoid being delisted in New York as a result of a disagreement between Washington and Beijing over access to auditing files.
U.S. authorities will soon be in Hong Kong to begin assessing Chinese companies that are listed on American exchanges after the two sides recently reached an agreement to end their ten-year standoff.
While some Chinese businesses with U.S. listings have opted to issue new shares along with their Hong Kong debuts, others, such as Nio Inc., have opted for a listing by introduction, during which neither new capital nor new shares are issued.
In the second quarter that concluded on June 30, Tencent Music reported an 18% increase in 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.
