By John Meyer, financial consultant. Eurasia Business News, September 15, 2022
Stock trading of Chinese streaming service Tencent Music Entertainment Group will begin in Hong Kong stock exchange on September 21, the company said.
TME is the latest in a string of Chinese companies to list in Hong Kong.
Tencent owns streaming platforms QQ Music, Kugou and Kuwo, plus karaoke app WeSing. The company is already publicly traded on the New York Stock Exchange (NYSE) in the U.S. (ticker: TME) and will enter the Hong Kong Stock Exchange as part of a direct listing. Unlike the IPO with a direct listing, the company does not issue any shares and does not raise cash, noted The Wall Street Journal.
Tencent Music announced in March plans to be located in Hong Kong along with other Chinese companies facing the threat of delisting in the United States due to disagreements between the stock exchange regulators of the two countries.
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Tencent Music entered the New York Stock Exchange in 2018. The company then raised $1.07 billion.
Since the beginning of 2022, Tencent’s capitalization has decreased by more than 30%, as the market downturn has weighed heavily on tech stocks. (Also listed on NYSE, shares of Alibaba are off nearly 25% this year, while Spotify’s stock is down nearly 58%.)
In July 2016, China Music Group (formerly Ocean Music Group), which owns Kugou Music and Kuwo Music, announced a merger with digital music division Tencent Group. In 2017, the company was officially renamed Tencent Music Entertainment Group.
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