TME-SW (01698) surged over 4% during Hong Kong trading, hitting an all-time intraday high of HK$83.3. The stock has now soared more than 80% year-to-date. At publication time, shares climbed 4.35% to HK$81.65 with turnover reaching HK$34.16 million.

The rally follows Citigroup's recent research report expressing optimism about Tencent Music's revamped subscription strategy. The investment bank noted the plan effectively balances net user additions with average revenue per user (ARPU) growth. By focusing on converting subscribers into super VIP members, Tencent Music demonstrates a resilient approach to ensuring stable music subscription revenue expansion while improving profit margins.

Citigroup further highlighted Tencent Music's strategic integration of Himalaya's premium long-form content assets. This move significantly enhances the platform's overall content offerings and boosts monetization potential through higher super VIP conversion rates and expanded advertising revenue opportunities.