Chinese e-commerce company and technology giant Alibaba Group Holdings Limited (New York Stock Exchange: BabaShares are down 6.67% in Hong Kong as of this Monday. This followed the company’s announcement of plans to raise the stock buyback threshold by an additional $ 4 billion.
what happenedAlibaba’s share buyback program will now target a $ 10 billion buyback through the end of 2022, 67% more than the previous $ 6 billion limit.
The largest volume of the buyback limit comes at a time when Alibaba stock has been hit by anti-competition investigations from Chinese authorities.
The State Market Regulatory Administration of China, the country’s market regulator, confirmed last week It is scrutiny Alibaba’s merchant policy, which requires merchants to either work exclusively on its platform or choose a competitive service.
After the crash on Thursday, Alibaba stock earnings fell year-on-year to 1.46%.
why does it matter: The antitrust investigation comes on the heels of comments made by Jack Ma, co-founder of Alibaba, about the Chinese financial system and lack of innovation.
The initial public offering of Alibaba-backed payment services company Ant Group was halted, following an investigation about a month ago. Chinese authorities, Sunday, instructions The subsidiary is shifting its focus towards the core payment services business, targeting Ant’s Wealth Management, Insurance, and Lending Services.
Price movement: BABA stock closed down 13.34% at $ 222 last Thursday.
See also: Experts explain why China slashed hopes of Jack Ma’s Ant’s IPO
Photo by N509FZ on Wikimedia
© 2020 Benzinga.com. Benzanga does not provide investment advice. All rights reserved.
“Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff.”
