Tencent Music shares debut on Hong Kong stock exchange
Firm is latest US-listed Chinese firm to opt for a second listing to offset the threat of being delisted in New York.
China’s Tencent Music Entertainment Group shares started trading at $18 Hong Kong dollars ($2.29) each in the company’s Hong Kong listing debut.
The online music company’s debut in Hong Kong on Wednesday comes after it announced last week that New York would remain its primary listing venue.
The company carried out a listing by introduction, which means no new shares or capital were raised in the transaction.
Tencent Music said one of its US-listed shares represented two of its Hong Kong shares. The opening price was flat compared with its US stock which closed in New York on Tuesday at $4.58.
Hong Kong’s Hang Seng Index is down 1.3 percent in early trade Wednesday and the tech index is off 1.5 percent.
Tencent Music’s US stock is down 33.1 percent 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 US-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 standoff and US officials have arrived in Hong Kong to start reviewing US-listed Chinese companies.
Tencent Music has a market capitalisation of $7.76bn.