Tencent Music climbs on deal to take stake in K-Pop agency SM

Tencent Music Entertainment

28/05/2025 04:18

** Shares of Tencent Music Entertainment 1698.HK climbs 2.9% to HK$71.7, on course for eighth consecutive session of gains

** Stock set for the biggest one-day gain since May 26; fourth-biggest gainer on Hang Seng Tech Index .HSTECH, which gains 0.1%

** Tencent Music's U.S.-listed stock TME.N rose 2.2% on Tuesday

** South Korea's Hybe 352820.KS said in a regulatory filing that it plans to sell its 2.2 mln shares in K-Pop agency SM Entertainment 041510.KQ to Tencent Music for 243 billion won ($177 mln)

** The 9.7% stake would make Tencent's 0700.HK music-streaming subsidiary the second-largest shareholder in SM Entertainment

** There have been signs of a potential thaw in the unofficial ban on K-Pop concerts and performances in China in place since 2016

** Tencent stock 0700.HK slips 1.1%

** SM Entertainment gains 0.1% while Hybe slips 0.5%

** YTD, Tencent Music Hong Kong shares up 61.4%, U.S.-listed stock up 57.8%

($1 = 1,373.6600 won)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))