Chinese e-commerce giant Alibaba has increased its share buyback program to $25bn, which will be conducted till March 2024. Alibaba’s share buyback program is its largest till date and tops its $15bn buyback program in August 2021. Last week, China announced its easing of regulatory crackdowns and supporting markets, as sentiment improved. Alibaba, which suffered a $470bn notional loss in value, also posted its slowest revenue growth in the December quarter. Due to the regulatory clampdown and slowing growth, the company’s shares have fallen over 55% in the last one year. Currently, the company is exploring new strategies for customer retention over aggressive acquisitions. “The upsized share buyback underscores our confidence in Alibaba’s long-term, sustainable growth potential and value creation… Alibaba’s stock price does not fairly reflect the company’s value given our robust financial health and expansion plans”, Deputy CFO Toby Xu said.
Alibaba dollar bonds were trading lower, its 3.6% 2024 were up over 0.29 points to 100.25 yielding 3.49%.
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