Tencent Music Entertainment Group's stock surged 5.79% during intraday trading on Monday, marking a significant rally for the online music platform.

The sharp increase follows the company's announcement that it has completed its acquisition of Ximalaya, a leading online audio platform in China. The deal, valued at up to $1.26 billion in cash and approximately 175.3 million class A ordinary shares, makes Ximalaya a wholly-owned subsidiary of Tencent Music, expanding its audio content empire.

Analyst sentiment also contributed to the positive momentum, with DFZQ maintaining a "Buy" rating on TME-SW and setting a target price of HK$52.39. The research firm highlighted the expected positive synergistic impact from the Ximalaya acquisition on content, traffic, and membership integration. Additionally, institutional interest has been growing, with Himalaya Capital establishing a new position in Tencent Music during the first quarter, signaling confidence in the company's long-term prospects despite recent market volatility.