Tencent Music Entertainment Group (TME) saw its stock soar 5.01% in intraday trading, joining a broader rally among Chinese ADRs despite the implementation of hefty US tariffs on Chinese goods. The surge comes as investors react positively to news of potential economic support measures from the Chinese government.
Chinese ADRs experienced a significant jump in trading, with various companies seeing notable gains. This upward trend occurred even as US President Donald Trump's "reciprocal" tariffs, including massive 104% duties on Chinese goods, took effect. The resilience of Chinese stocks in the face of these trade tensions has caught the attention of market observers.
Adding to the positive sentiment, reports have emerged that China's top leaders are planning to convene a high-level meeting as early as Wednesday. The meeting aims to discuss measures to boost the economy and stabilize capital markets amidst the escalating trade war with the United States. Potential topics include initiatives to boost domestic consumption, support capital markets, and possibly enhance export tax rebates for domestic companies. This proactive approach by Chinese authorities appears to be bolstering investor confidence in Chinese stocks, including Tencent Music.
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