Economy

Tencent Music Announces A $ 1 Billion Stock Buyback Program

Tencent Music Announces A $ 1 Billion Stock Buyback Program

Tencent Music Entertainment executives celebrate the company’s initial public offering outside the New York Stock Exchange (NYSE) in New York, US, December 12, 2018

Brian R Smith | Reuters

Guangzhou, China – Tencent Music Entertainment Group It announced plans to buy back up to $ 1 billion in shares on Monday after US-listed stocks suffered a big drop last week.

The buybacks could begin on Monday and will take place over the next 12 months.

Tencent Music is the online music arm of the Chinese tech giant Tencent That manages broadcast services and applications. The company, listed on the New York Stock Exchange, lost nearly a third of its value last week Selling Chinese technology stocks.

Part of that sale came after the U.S. Securities and Exchange Commission (SEC) adopted a law that could lead to the write-off of foreign companies that are in conflict with the new auditing rules.

But more pressure came on Friday after that Archegos Capital Management was forced to liquidate positions Held in some of the major Chinese technology names, CNBC reported.

It said in a statement that Tencent Music will buy back Class A common shares in the form of US depository shares.

“The share buyback program is a strong indication 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 Entertainment) and create value for its shareholders,” Tung Tao Sang, chairman of the board, said.

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