Spotify-backed online music platform Tencent Music to go ahead with secondary listing in Hong Kong
- A listing through way of introduction might help the company avoid giving a big pricing discount because of the current sluggish market, analyst says
- Tencent Music’s secondary listing is expected to add much-needed momentum to the Hong Kong primary market along with Leapmotor’s IPO

Tencent Music Entertainment Group is pushing ahead with plans to seek a secondary listing in Hong Kong, joining other US-listed Chinese firms in hedging against the risk of delisting from American exchanges.
Way of introduction allows companies to list their shares more quickly, without selling new shares or raising more funds. The existing shares of such companies are often widely held, so that there will already be an open market for their stock after the new listing, even without marketing arrangements by underwriters.
Tencent Music’s shares in Hong Kong will be fully fungible with its American depository receipts (ADRs), meaning that stock bought or sold in one market can be converted or sold in another.

“Tencent Music’s listing was planned much earlier, [so] it doesn’t hurt the company to move forward with the process,” said Alan Li, portfolio manager at Atta Capital in Hong Kong. A listing through way of introduction has the advantages of lower costs and a simpler process, he said, adding that the company could also avoid having to give a big pricing discount because of the current sluggish market.