Tencent Music shares open at HK$18 each in Hong Kong debut
Reuters
Published Sep 20, 2022 09:35PM ET
Updated Sep 20, 2022 09:46PM ET
By Scott Murdoch and Donny Kwok
HONG KONG (Reuters) -China's Tencent Music Entertainment Group (NYSE:TME) shares started trading at HK$18 ($2.29) each in the company's Hong Kong listing debut on Wednesday.
The online music company announced last week that while New York would remain its primary listing venue it would start trading its shares in Hong Kong.
The company carried out a listing by introduction which means no new shares or fresh capital was raised in the transaction.
Tencent Music said one of its U.S.-listed shares represented two of its Hong Kong shares. The opening price was flat compared to its U.S. stock which closed in New York on Tuesday at $4.58.
Hong Kong's Hang Seng Index is down 1.3% in early trade Wednesday and the tech index is off 1.5%.
Tencent Music's U.S. stock is down 33.1% so far in 2022, hit by negative sentiment towards Chinese tech stocks amid a regulatory crackdown on the sector.
The company became the latest in a string of U.S.-listed Chinese firms to opt for a second listing in Hong Kong to offset the threat of being delisted in New York due to a bilateral dispute between Washington and Beijing over access to auditing papers.
The two sides recently struck a deal to end the decade-long stand off and U.S. officials have arrived in Hong Kong to start reviewing U.S.-listed Chinese companies.
Tencent Music has a market capitalisation of $7.76 billion.
($1 = 7.8496 Hong Kong dollars)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.