** Hong Kong shares of Tencent Music Entertainment drop as much as 10.3% to HK$40.6, their lowest since Sept. 24, and on track to snap two consecutive sessions of gains
** Stock on course for the biggest one-day decline since Oct. 8
** U.S.-listed stock fell 5.5% on Tuesday
** Tencent Music reported a return to quarterly revenue growth on Tuesday, after four straight quarters of decline, but the social entertainment unit continues to weigh on overall growth amid removal of certain live-streaming features to comply with Beijing's anti-gambling regulations
** Tencent Music CEO Ross Liang expects the social entertainment business to be stable in 2025
** Citi maintains "Buy" on the U.S. shares but trims target price to $14.50 from $15 saying 3Q24 print came relatively in-line with expectations overall and view share price weakness post result print as an enhanced buying opportunity
** Hang Seng Tech Index falls 1.6% and Hang Seng Index slips 0.8%
** Hong Kong stock rose 33.1% YTD, U.S.-listed shares up 21.2% YTD
(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))
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