Shares of Tencent Music Entertainment Group (TME) surged over 5% in pre-market trading on Thursday, fueled by a broader rally in Chinese stocks listed in the U.S. The sharp price movement came after China unveiled a much-anticipated stimulus package, boosting investor confidence and driving a surge in equities traded as American Depositary Receipts (ADRs).
China's central bank announced a series of measures aimed at reviving the country's slowing economy, including cutting the amount of cash banks must keep in reserve and lowering a key policy rate. These actions are part of a broader stimulus package that also includes tax cuts, infrastructure spending, and supportive policies for various sectors.
As a leading online music streaming platform in China, Tencent Music is expected to benefit from the improved economic outlook and potential increase in consumer spending. The company's core business, which includes music subscription services and virtual gift sales, could see renewed momentum as household incomes and confidence recover.
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