Tencent Music chooses Hong Kong listing due to referrals, set to debut next week

Tencent Music Entertainment will celebrate its IPO on the floor of the New York Stock Exchange (NYSE) on December 12, 2018 in New York, USA. REUTERS/Bryan R Smith/File Photo

HONG KONG (Reuters) – China’s Tencent Music Entertainment Group (TME.N) will start trading in Hong Kong next Wednesday after the company conducted a referral secondary listing said.

New York remains the primary listing location, and its US and Hong Kong shares are fully fungible, according to the company.Hong Kong stocks are traded under the ticker code

Tencent Music has opted for a second Hong Kong listing in a series of U.S. listings to offset threats of delisting in New York following a bilateral dispute between Washington and Beijing over access to audit documents. It’s the latest in a Chinese company.

The U.S. and China recently reached a deal to end a decade-long stalemate, and U.S. officials are expected to arrive in Hong Kong soon to begin vetting Chinese companies listed in the U.S.

While some U.S.-listed Chinese companies have opted to raise fresh capital to debut in Hong Kong, others, including Nio Inc (9866.HK), have gone public through referrals without raising new capital or issuing new shares. rice field.

In August, Tencent Music reported an 18% increase in music subscription revenue for the second quarter ended June 30.read more

The company’s shares have fallen 30% so far this year, taking the company’s market cap to $8.1 billion, hurt by negative sentiment towards Chinese tech stocks amid a regulatory crackdown on the sector.

Reported by Scott Murdoch, Hong Kong. Editing by Edwina Gibbs

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