Alibaba stock spikes after it ups share buyback program to $25 billion
Alibaba will open its headquarters in Hangzhou China on Wednesday Nov. 10, 2021.
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Alibaba’sHong Kong’s stock rose nearly 9% after Chinese e-commerce giant announced it would double the size of its sharebuyback program, from $15 billion up to $25 billion.
The company stated that the share-repurchase plan will remain in effect for two years, ending March 2024.
AlibabaUnder the previous buyback plan, 56.2 million American Depositary Shares (ADRs) were purchased back. This amount is approximately $9.2 Billion. ADRs, which are listed in the U.S. act as proxy companies for foreign corporations.
The Hangzhou-headquartered e-commerce giant is looking to boost investor confidence as its shares have lost around two-thirds of their value since hitting an all-time high in October 2020.
Alibaba is facing a variety of problems, including macroeconomic headwindsThe Chinese government continued to tighten regulations, which led authorities to give the company a slap on the face. $2.8 billion antitrust fine last year.
China has introduced new, sweeping rules in the technology sector, sometimes without prior notice, during the last 14 months. These moves shaken investor confidence and took billions off of the value of China’s listed giants.
Alibaba appointed Weijian Shan (executive chairman, Hong Kong-based investment group PAG) to its board on Tuesday as an independent director. This appointment took effect March 31st. Shan will join the board’s audit panel. He will replace Börje Ekholm, CEO of the telecommunications equipment giant EricssonAlibaba Board member, Willie, will soon be retiring.