Tencent Music shares started trading at HK$18 in its debut listing in Hong Kong

Shares in China’s Tencent Music Entertainment Group began trading at HK$18 ($2.29) per one during the company’s listing in Hong Kong on Wednesday.

The online music company said that while New York will remain its main listing location, it will begin trading its shares in Hong Kong.

The company was listed by introduction, which means that the transaction does not involve new shares or new capital.

Tencent Music said one US-listed share represents two of its shares in Hong Kong. The share price was the same as US stocks, which closed in New York on Tuesday at $4.58.

Hong Kong’s Hang Seng index fell 1.3% in early trading on Wednesday, while the technology index tumbled 1.5%.

US Tencent Music shares fell 33.1% in 2022 due to strained relations with China and regulatory action against Chinese tech companies.

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Tencent Music is the latest in a list of US-listed Chinese companies that opted for the second listing in Hong Kong to avoid being excluded from trading due to a conflict between Washington and Beijing over access to audit documents.

China and the US recently struck a deal to end years of conflict, and US officials have traveled to Hong Kong to begin scrutiny of US-registered Chinese companies.

While some US-listed Chinese companies have opted to raise new capital by appearing in Hong Kong, others, including Nio Inc (9866.HK), have gone for listing by listing without raising new capital and shares.

Earlier Tencent Music’s music subscription revenue grew 18% in the second quarter, but with a backlash against Chinese tech stocks amid regulatory action in the sector, its shares have fallen this year, leaving the company’s market value at $8.1 billion.