Chinese Concept Stocks | Tencent Music to Acquire Himalaya in $12.6 Billion Deal

On June 10, Eastern Time (Tuesday), the three major U.S. stock indexes collectively closed higher. The S&P 500 Index rose 0.55% to 6038.81 points, the Dow Jones Index increased by 0.25% to 42866.87 points, and the Nasdaq Index gained 0.63% to 19714.99 points.

On June 10, the Nasdaq Golden Dragon China Index rose 0.30%. Among popular Chinese concept stocks, NIO increased by 5.69%, TSMC rose by 2.58%, XPeng Motors gained 1.44%, NetEase increased by 0.88%, Pinduoduo rose by 0.76%, Alibaba increased by 0.37%, Bilibili remained unchanged, Baidu fell by 1.32%, and JD.com decreased by 0.44%.

Among continuously rising Chinese concept stocks, 51talk rose by 7.57% over 10 consecutive days with a cumulative increase of 56.25%, FlashEx increased by 6.41% over 9 days with a cumulative rise of 40.38%, TSMC rose by 2.64% over 7 days with a cumulative increase of 9.90%, Zhihu rose by 0.25% over 6 days with a cumulative increase of 6.35%, and Beike increased by 2.34% over 6 days with a cumulative rise of 7.11%.

Among continuously falling Chinese concept stocks, Huasheng Technology fell by 8.00% over 11 consecutive days with a cumulative decrease of 88.34%, WiMi Hologram Cloud dropped by 10.34% over 9 days with a cumulative decrease of 36.07%, Yancon Technology decreased by 2.86% over 6 days with a cumulative decrease of 14.64%, HiTi Digital decreased by 0.72% over 6 days with a cumulative decrease of 10.97%, HaoXin Holdings fell by 3.61% over 5 days with a cumulative decrease of 23.83%, Inlife dropped by 7.27% over 5 days with a cumulative decrease of 13.56%, and Artivist Holdings fell by 9.60% over 5 days with a cumulative decrease of 57.10%.

According to the latest data, JD.com’s food delivery service has exceeded 25 million orders per day, capturing over 31% of the national market share. It holds about 45% market share in the premium food delivery segment, forming a competitive landscape with Meituan and Ele.me. As per the data, the daily order volume in China's food delivery market ranges between 80 to 90 million orders.

The founders of Himalaya responded to Tencent Music’s acquisition, stating that the brand and product will continue to operate independently, with no changes in the core management team or strategic development direction. On June 10, Tencent Music Entertainment Group announced the acquisition agreement with Himalaya, planning to acquire Himalaya for $1.26 billion in cash and equity of Tencent Music. Himalaya emphasized that its brand, products, and operations will remain independent, and the core management team and strategic direction will not change. Himalaya’s co-founders, Chen Xiaoyu and Yu Jianjun, expressed that the acquisition aims to respond to industry and technological changes, with a focus on resource sharing, joint R&D, enhancing user experience, and increasing creator revenue. As of June 10, Himalaya has over 2300 employees, with no changes expected in employee positions or salaries.

Tencent Music announced its plan to acquire Himalaya for $1.26 billion. The company has signed a merger agreement and plan with Himalaya and several other contracting parties. Himalaya is one of China's leading online audio platforms and will become a wholly-owned subsidiary of Tencent Music after the transaction is completed. The completion of the transaction is subject to approval by relevant regulatory authorities and several other preconditions. Upon completion, the equity securities held by Himalaya's shareholders and employee stock plan participants will be canceled in exchange for a total of $1.26 billion in cash, no more than 5.1986% of Tencent Music's issued and outstanding Class A ordinary shares as of not later than five business days before the transaction completion date, and no more than 0.37% of such Class A ordinary shares of the total shares.

TSMC reported sales of 320.52 billion New Taiwan Dollars in May, marking a year-on-year increase of 39.6%.

He Xiaopeng stated on his personal Weibo that the global delivery of XPeng Motors X9 has exceeded 30,000 units, setting a new record for high-end pure electric MPVs.

BYD and Alibaba Cloud have maintained deep cooperation, extensively applying the large model in various business scenarios. It is reported that Alibaba Cloud's AI agent Mobile-Agent will complete the operation of Alibaba ecosystem apps in BYD's vehicle system, interacting with BYD's intelligent voice team AI agent. After the Mobile-Agent is integrated into BYD's cockpit, users can perform complex operations with a simple voice command.