Tencent Music Entertainment Group's stock soared 6.39% in Friday's trading session, outperforming the broader market. The company's share price rally came amid easing US-China tensions following a constructive phone call between US President-elect Donald Trump and Chinese President Xi Jinping.
The two leaders discussed several key issues, including trade, the fentanyl crisis, and the fate of TikTok during their pre-inauguration conversation. According to Trump, the call was "a very good one for both China and the U.S.A.", signaling a potential thaw in the strained relationship between the world's two largest economies.
Investors welcomed the positive developments, sending Chinese stocks listed on US exchanges, including Tencent Music, soaring on Friday. The reduction in geopolitical tensions and the prospect of improved US-China relations were viewed as favorable for Chinese companies, fueling optimism and driving their share prices higher.
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