Tencent Music Entertainment posted second-quarter revenue of 8.44 billion yuan ($1.18 billion), a 17.9% year-on-year increase that comfortably beat analysts’ estimates. Income from online music services climbed 26.4% to 6.85 billion yuan, while music subscription revenue grew 17.1% to 4.38 billion yuan as paying users rose to 124.4 million. Adjusted net profit widened 33% to 2.6 billion yuan, or 1.66 yuan per American depositary share, surpassing the 1.46 yuan consensus. Management credited the gains to continued uptake of its premium SVIP tier—now more than 15 million subscribers—alongside higher engagement with long-form audio and an expanding catalogue following the agreed $2.4 billion acquisition of podcast platform Ximalaya. Revenue from social-entertainment services fell 8.5%, underscoring the company’s strategic shift toward music-centric offerings. Investors reacted swiftly: U.S.-listed TME shares gained about 5% in pre-market trading, while the Hong Kong-listed stock jumped as much as 15.2%, helping lift the Hang Seng Tech Index 2.6%. Parent Tencent Holdings also touched a four-year high at HK$573 amid a broader bid for Chinese megacap tech names. The rally coincides with a pickup in risk appetite across mainland markets. Margin financing on the Shanghai and Shenzhen exchanges has exceeded 2 trillion yuan for the first time since 2015, and combined turnover on the two bourses topped that level in a single session. The CSI 300 is now 16% above its April low, suggesting that earnings beats from firms such as Tencent Music are feeding into a wider revival in Chinese equities.