Tencent Music Entertainment Group, the NYSE-listed music streaming service of Chinese tech giant Tencent, has embarked on its biggest share buyback program yet with an announcement that it’s been authorized to repurchase up to $1 billion worth of shares in a twelve-month period commencing March 29, 2021.

Tencent Music’s fresh $1 billion share buyback is more than double the company’s last share buyback program of $400 million. Tencent Music began trading on the NYSE after an IPO in 2018 and has undertaken just one share buyback program since then before this one marking the second.

• The $1 billion share buyback announcement by Tencent Music notably comes just after the company was caught up in a massive share selloff of over $20 billion that was triggered by a group of major banks, and the share selloff triggered significant short-term slumps in the share prices of affected companies like itself.

• A share buyback is basically the re-acquisition by a company of its own shares from stockholders. It’s a practice that’s controversially done to boost the value of a company’s own stock and to improve its financial statements.

• For its buyback, Tencent Music will repurchase its Class A ordinary shares in the form of American depositary shares, the company said in a statement.

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