Tencent Music shares rise in Hong Kong debut as Asia’s third-largest capital market stirs from listing slump
- TME opened at HK$18 each or 0.1 per cent above its American depositary shares, which closed at the equivalent of HK$17.98 in New York on Tuesday
- TME shares, which are fully fungible with their ADSs, ended trading in Hong Kong at HK$18.22
Tencent Music Entertainment Group (TME) rose in Hong Kong when its shares began trading in Asia’s third-largest capital market, as investors piled into China’s largest online music platform operator owned by Tencent Holdings and backed by Spotify.
TME’s shares began trading at HK$18 each under the 1698 stock code and closed at HK$18.22 in Hong Kong trading. That’s 1.3 per cent above the company’s American depositary shares or ADSs, which last traded at US$4.58 (HK$35.95) in New York on Tuesday. Each ADS represents two TME Class A shares in Hong Kong.
TME listed in Hong Kong by way of introduction, a quicker and easier route than normal initial public offerings (IPOs), without raising any additional capital from investors. The positive response to its listing is a shot of confidence for the growing queue of Chinese companies that are seeking a sanctuary closer to home amid rising US-China tension.
Executive Chairman Cussion Pang Kar-shun and Chief Strategy Officer Tony Yip Cheuk-tung struck a ceremonial gong at the Hong Kong stock exchange at 9.30am with mallets wrapped in red cloth to mark the commencement of trading.
TME is the largest online music platform in China, with at least 766 million monthly active users in the first quarter. Net profit fell 23 per cent to 3.2 billion yuan (US$454 million) last year, while revenue rose 7.2 per cent to 31.2 billion yuan.
