By Scott Murdoch
Hong Kong (Reuters) – China Tencent Music Entertainment Group (NYSE:) said its shares are set to start trading in Hong Kong next Wednesday after the company made a secondary listing by filing.
The company said New York will remain its primary listing location and the company’s shares in the United States and Hong Kong will be fully fungible. Its shares will be traded in Hong Kong under stock symbol 1698.HK
Tencent Music has become the latest in a string of US-listed Chinese companies to choose a second Hong Kong listing to offset the threat of delisting in New York due to a bilateral dispute between Washington and Beijing over access to audit papers.
The two sides recently struck a deal to end a decade-long standoff, and US officials are due to arrive in Hong Kong soon to begin a review of US-listed Chinese companies.
While some Chinese companies listed in the US have opted to raise new capital with their Hong Kong start, others including Nio (NYSE: Inc) have chosen to list by introduction in which no new capital is raised or issued. new shares.
Tencent Music reported in August that music subscription revenue rose 18% in the second quarter ended June 30.
Swayed by negative sentiment toward Chinese tech stocks amid a regulatory crackdown on the sector, its shares have fallen 30% so far this year, giving the company a market value of $8.1 billion.