Chinese Music Platform Stocks Lose 1.7 Trillion Won on Earnings Day

Tencent Music Entertainment Group (TME) saw its shares plunge 24.45% intraday, closing at $11.40 per share—about KRW 15,000—erasing roughly $1.3 billion (≈KRW 1.7 trillion) in market value in a single day. Volume spiked to 40.47 million shares, and even after the sell-off, TME’s market capitalization remained around $6.57 billion (≈KRW 9 trillion).

As disclosed in February, the company is scheduled to release its fourth-quarter and full-year 2025 results before today’s U.S. market open. Investors are expressing concerns over slowing growth and a conservative outlook. Some in online investment communities have pointed to management’s decision to stop publishing quarterly user metrics—opting instead for annual reporting—as a key trust issue that helped trigger the steep drop.

On the strategic front, Tencent Music has been aggressively expanding its K-content partnerships. It recently formed the joint venture ONECEAD with CJ ENM and JYP China, and is collaborating with Kakao Entertainment on a K-pop artist chart business.

Tencent Music is the largest online music and audio platform in China under Tencent, operating QQ Music, Kugou, Kuwo and WeSing. It took its current form after merging with China Music Group in 2016. Dual-listed on the New York Stock Exchange and the Hong Kong Stock Exchange, the company has delivered double-digit revenue and profit growth in 2024 and 2025, driven by subscription revenues and an increase in paid users.