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Tencent Music plans Hong Kong listing as soon as next week

September 15, 2022 8:35 pm

Tencent Music Entertainment is planning to start trading on the Hong Kong Stock Exchange in next Wednesday.

The Shenzhen-based company, whose shares already trade in New York, is working with advisers on the preparations for its second listing on the Hong Kong Stock Exchange. Its Hong Kong shares will trade under the stock code 1698.HK.

In March, Tencent Music revealed it plans to pursue a secondary listing in Hong Kong, joining 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.

Shenzhen-headquartered Tencent Music, which consist of QQ Music, Kugou, and Kuwo streaming services as well as the WeSing karaoke app, booked a total revenue of 6.91 billion yuan in the second quarter ended June 30, down 13.8 percent compare to the same quarter of last year. 

Tencent Music was at the center of regulatory scrutiny last year, was forced to terminate its exclusive contracts with big music labels in accordance with a recent government mandate, losing its competitive advantage against rivals such as NetEase’s Cloud Music and Bytedance-owned short-video app Douyin.

Additionally, Tencent Music reported decreases in online music mobile monthly active users (593 million, down 4.8 percent year-over-year), social entertainment mobile MAUs (166 million, down 20.6 percent YoY), social entertainment paid users (7.9 million, down 28.2 percent YoY), and online music’s monthly average revenue per paid user (¥8.5/$1.25, down 5.6 percent YoY but up slightly QoQ).