(Alibaba) Shares of Chinese tech giant Alibaba rose more than 11% in Hong Kong on Tuesday after raising its stock repurchase program to $25 billion from the previous $15 billion.
The share buyback program will last for two years through March 2024 as the company focuses on boosting investor confidence.
The repurchase happens when Alibaba stock has grounded by around two-thirds since reaching a record in October 2020.
Alibaba’s Deputy Chief Financial Officer Toby Xu said that the current stock’s price does not reflect a fair valuation given the financial soundness of the e-commerce giant and plans for expansion.
The Chinese e-commerce giant, which is also listed in the US, has been facing macroeconomic headwinds as well as regulatory clampdown by Beijing. The company was fined $2.8 billion by the Chinese government last year.
Alibaba also appointed Weijian Shan, an executive chairman of PAG Group, to its board as an independent director.
9988: HKG is up +11.20%.
