Tencent Music Entertainment Group (TME) authorized a $1 billion share repurchase program after the SEC tightened auditing standards for foreign companies listed on U.S. bourses, giving investors the jitters.

It came after TME's New York Stock Exchange-listed shares plunged a dramatic 30% last week, on a double blow of the SEC announcement and a sudden massive share sale linked to private wealth manager Archegos Capital.

TME’s board said the buyback was a demonstration of “confidence in the company’s business outlook and long-term strategy.”

New York-listed TME plans to buy back up to $1 billion of its class A ordinary shares in the form of American depositary shares (ADSs) during a twelve-month period starting March 29, it said in a statement.

The proposed repurchases, which will be funded from TME’s existing cash balance, may be made through open market transactions at prevailing market prices, privately negotiated transactions, block trades or other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations, according to the statement.

On March 24, the U.S. Securities and Exchange Commission (SEC) adopted interim final amendments to implement congressionally mandated submission and disclosure requirements of the Holding Foreign Companies Accountable Act, which is aimed at removing foreign firms from U.S. bourses if they fail to comply with American auditing standards.

Shares of dual-listed Chinese companies including Alibaba and JD.com fell sharply last week after the SEC’s decision, which China’s foreign ministry said is discriminatory against Chinese companies and would hurt the reputation of U.S. capital markets. Reuters reported that the SEC’s move also led to a sell-off of some dual-listed Chinese companies in Hong Kong.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Tencent Music and Warner Music Launch Joint Venture and Extend Licensing Deals