Tencent Music (TME): Earnings Beat, New Buybacks — But Is the China Risk Priced In?

Tencent Music (TME) recently reported stronger-than-expected earnings, increased its cash reserves, and continued share buybacks, yet its stock trades at a significant discount compared to global streaming peers due to ongoing concerns about China risk. The article explores whether the market’s skepticism about Chinese stocks has gone too far, suggesting that TME could be a mispriced opportunity for investors willing to navigate regulatory and geopolitical complexities. It highlights the divergence between the company’s strong fundamentals and muted stock reaction, posing the question of when the US market will again value Chinese platform risk appropriately.