Administrators of Tencent Music Entertainment celebrate the company’s IPO outside the New York Stock Exchange (NYSE) in New York, U.S., December 12, 2018
Bryan R Smith | Reuters
GUANGZHOU, China — Tencent Music Show Group announced plans to buy back up to $1 billion worth of shares on Monday after the U.S.-listed stock suffered a large drop last week.
The repurchases can start on Monday and will take place over the next 12 months.
Tencent Music is the online music arm of Chinese technology Amazon Tencent which runs streaming services and apps. The company, which is listed on the New York Stock Exchange, bygone about a third of its value last week amid a sell-off in Chinese technology stocks.
Part of that rep came after the U.S. Securities and Exchange Commission (SEC) adopted a law which could lead to delisting of foreign firms that drop dead foul of the new auditing rules.
But further pressure came on Friday after Archegos Capital Management was forced to liquidate whereabouts it held in some major Chinese technology names, CNBC reported.
Tencent Music will repurchase Excellence A ordinary shares in the form of American depositary shares, it said in a statement.
“The Share Repurchase Program is a strong measure of the Board’s confidence in the Company’s business outlook and long-term strategy, and we believe it will ultimately benefit TME (Tencent Music Amusement) and create value for its shareholders,” Tong Tao Sang, chairman of the board, said.