Headquartered in Shenzhen, China, Tencent Music Entertainment Group (TME) operates online music entertainment platforms that provide music streaming, online karaoke, and live streaming services in the People’s Republic of China. TME’s shares have slumped 76.1% in price over the past year and 8.2% year-to-date to close yesterday’s trading session at $6.29. Also, the stock is currently trading below its 50-day and 200-day moving averages.
Investors’ worries rose with the United States’ tightening of regulations for Chinese companies listed on U.S. exchanges. Last December, the U.S. Securities and Exchange Commission finalized rules to that would ban foreign companies listed in the U.S. from trading if their auditors do not comply with requests for information from U.S. regulators.
