Tencent Music Entertainment Group announced plans to buy back shares worth $ 1 billion, Sunday (28/3) night.
The purchase was the biggest. After a few days earlier that US securities regulators adopted strict measures for foreign companies on American stock exchanges.
The Chinese music streaming company can purchase class A shares worth US $ 1 billion. For over a 12-month period starting March 29.
In the past week, Tencent Music’s stock declined by a third of its value. The sharp decline was due to the US Securities and Exchange Commission (SEC) threatening to exclude foreign companies from US exchanges. This can be done also if the foreign company does not meet US auditing standards.
Not only Tencent Music, Chinese companies listed on the US stock exchange also experienced a decline including shares of Baidu Inc and ViacomCBS Inc.
According to Bloomberg and Financial Times reports, Goldman Sachs has liquidated more than US $ 10 billion of shares in these companies in block trading.
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