(Yicai Global) March 29 -- Chinese music streaming platform Tencent Music Entertainment Group, whose share price has tumbled by nearly 40 percent in less than a week,will buy back USD1 billion worth of its stock in New York.

The platform will purchase its American depositary receipts through open market transactions and block trades within a year, the Shenzhen-based firm said in a statement yesterday.

The company's equity price plummeted last week after Bill Hwang's fund Archegos Capital was reportedly forced to liquidate and sell its holdings of many Chinese stocks, including that of Tencent Music, according to IPO Edge. Consequently, Tencent Music's market cap shrunk by USD20.8 billion in just three days.

The platform's chief was confident in the face of the sell-off. "The Share Repurchase 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 and create value for its shareholders," said Chairman Tong Tao Sang.

Tencent Music increased its gains modestly in 2020. Its net profit rose by 0.9 percent to CNY4.95 billion (USD756 million) from a year ago and its revenue climbed by 14.6 percent to CNY29.15 billion (USD4.5 billion), according to its earnings report published on March 22.

Tencent Music's stock price [NYSE: TME]fell by 1.2 percent to USD20.10 in New York on March 26. On March 23, the shares had closed at USD31.79.

Editor: Emmi Laine, Xiao Yi