Image Source : China Visual

BEIJING, September 21 (TMTPOST) – Tencent Music Entertainment Group was listed on the main board of the Hong Kong Stock Exchange by way of introduction on Wednesday, opening at a price of HK$18 ($2.3) per share, and has been rising slightly since then.

By the midday break, Tencent Music was up 1.33% at HK$18.22 ($2.32) per share, with a total market capitalization of nearly HK$62.534 billion ($7.97 billion). Tencent Music's Hong Kong stock listing price refers to its American Depositary Share (ADS) price. At the U.S. stock close on Tuesday, Tencent Music was down 0.65% at US$4.58 ($0.58) per ADS.

Based on the closing price of U.S. shares on Tuesday, Tencent Music's total market value of U.S. shares was US$7.86 billion, nearly half the market value of Swedish music streaming platform Spotify, and about four times the market value of NetEase Cloud Music, the "second" domestic player in the industry of China.

Tencent Music's market cap has fallen nearly 67% from its U.S. listing in December 2018, along with the regulatory pressure and internet industry down cycle that has hit Chinese stocks in the U.S. over the past three years.

On last Thursday, Tencent Music received in-principle approval for a secondary listing on the main board of the Hong Kong Stock Exchange.

Tencent Music officially announced its pursing of secondary listing on the HKSE on March 21, 2022 in order to provide "greater liquidity and more protection for shareholders in an evolving regulatory environment" against the backdrop of the U.S. Securities and Exchange Commission (SEC) placing five Chinese American Depositary Receipt (ADRs) on the "provisional delisting list" on March 8.

In May, Tencent Music was also placed on the SEC's pre-delisting list, which means that if the company failed to provide documentary evidence that it was not eligible for delisting, it could be delisted from the U.S. or banned from over-the-counter (OTC) trading in the U.S. in 2024.

(USD to HKD exchange rate: 1 USD = 7.85 HKD)