Dusseldorf The Chinese online retailer Alibaba is massively expanding its share buybacks. The Hangzhou-based company announced on Tuesday that it would buy back another $10 billion worth of shares by March 2024.
This is Alibaba’s largest buyback program since its IPO in 2014, bringing the total volume of buybacks to $25 billion. That’s a record among Chinese tech companies.
The news was well received on the stock exchange: In Hong Kong, Alibaba shares rose by more than ten percent. It has halved its loss since the beginning of the year to around eight percent.
But is the stock buyback program really acting as a catalyst for the price? Rukim Kuang, founder of the research firm Lens Company, thinks the decision makes sense as stricter government regulation would make investment more difficult.
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