Tencent Music drops 14% premarket on China restrictions

Tencent Music Entertainment Group's shares plummeted over 14% in premarket trading in the United States on Monday after Chinese anti-monopoly regulators ordered the company to cancel exclusive music licensing deals with record labels.

The State Administration for Market Regulation specified that its order, issued this past weekend, must be carried out within 30 days. A 500,000 yuan ($77,150) fine was also imposed against the company. Tencent Music subsequently announced it will comply with the order.

The company's shares were down 14.38% at 6:28 am ET, selling for $9.25.

Baha Breaking News (BBN) / MS