Understanding the Market | Tencent Music-SW rose nearly 3%, with institutions stating that recent acquisition plans will further enhance the company's overall content supply

Tencent Music-SW rose nearly 3%, and as of the time of writing, it increased by 2.07%, reaching HKD 78.9, with a transaction volume of HKD 38.5795 million. In terms of news, Tencent Music recently announced that it has signed a merger agreement with Ximalaya, planning to fully acquire Ximalaya, with a total transaction price of approximately RMB 20.9 billion. Nomura believes that the merger agreement between Tencent Music and Ximalaya aligns with Tencent Music's investment strategy to strengthen its content ecosystem and may enhance its content supply capabilities in the long audio field. Citigroup expressed an optimistic view on Tencent Music-SW's latest music subscription plan, stating that the plan balances the growth of net new users and average revenue per user (ARPU), and is committed to converting subscribers into super VIP members, proving to be a sustainable and resilient approach to ensure stable growth in music subscription revenue and improve profit prospects. The bank believes that Tencent Music's addition of Ximalaya's leading long-form content assets to its platform will further enhance its overall content supply and improve monetization capabilities by increasing the conversion rate of super VIP members and advertising revenue potential