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BEIJING, September 14 (TMTPOST)— China’s largest music streaming service provider is going to join in the homecoming trend for Chinese shares listed in the United States even regulators of the two countries settled agreements on audit last month, effectively mitigating Chinese firms’ delisting risk.
Source: Visual China
Tencent Music Entertainment Group has applied for a secondary listing on the Main Board of the Hong Kong Stock Exchange (HKEX) through a way of introduction, an unusual direct listing without any offering of new shares, according to a filling with HKEX. The company expected its Class A ordinary shares to start trading from September 21 under the stock code “1698”.
The statement confirms a report earlier Wednesday, which said the Tencent’s music unit was working on preparations for its listing in Hong Kong and its marketing activity could begin as soon as the coming days.
Tencent Music became the second U.S.-listed Chinese firm which sought listing in the home market’s financial hub by means of introduction. Shares of NIO Inc, the only one of three Tesla’s Chinese rivals listed in U.S. that remained being traded outside Hong Kong, began trading on March 10. The electric vehicle maker also launched listing in Singapore with the same way in May.
Tencent Music’s new listing came after a landmark audit deal reached almost three weeks ago. In late August, the China Securities Regulatory Commission (CSRC), the Ministry of Finance, and the U.S. Public Company Accounting Oversight Board (PCAOB), an accounting body under the U.S. Securities and Exchange Commission (SEC), reached an audit and regulatory cooperation agreement. The agreement would give PCAOB full access to Chinese audit information, and allow it to take direct testimony from accounting firm staff in China for its investigation.
The agreement has made clear arrangements on the treatment and use of possibly sensitive information during audit oversight cooperation, providing a feasible way for both sides to discharge their regulatory mandates while protecting relevant information, the state media Xinhua News Agency commented.
It was reported that PCAOB inspectors could fly to Hong Kong as early as this week for audit inspection on U.S.-listed Chinese companies under the deal, and then PCAOB officials would decide if they obtain enough access to audit papers to recognize Chinese firms meet compliance requirements. The on-site inspection was said to involve review of the latest financial documents, check of internal control systems and interview with audit personnel.
关键词： Fundraising Class statement code stock
