[중국 마이종목] Alibaba decided to buy 11 trillion worth of treasury stock in’stock price crash’

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Alibaba, a Chinese internet dinosaur that is facing a recent “withdrawal” by the Chinese government, has decided to massively expand its share buyback program in response to the stock price plunge.

On the morning of the 28th (local time), Alibaba announced in a public announcement on the Hong Kong-New York Exchange, “The board of directors has decided to increase the size of the treasury stock purchase plan from $6 billion to $10 billion (about 10 trillion won).”

According to the public announcement, the plan to buy back shares will continue for two years until the end of 2022, and will be implemented from the fourth quarter of this year.

This is a countermeasure following the recent collapse of Alibaba’s stock price in Hong Kong and New York Stock Markets amid concerns over antitrust investigations by the Chinese government. In the Hong Kong and New York stock markets, Alibaba’s stock price has fallen by about 30% from its year-round high at the end of October this year.

Since last month, the Chinese government has been spreading’Internet Dinosaur (Big Tech) Beating’ in all directions due to antitrust and Internet finance regulations.

In particular, Alibaba became a major target. Starting with the cancellation of the Ant Group listing last month, online financial sanctions, the establishment of an antitrust law for Internet companies, the imposition of antitrust violations, the launch of an antitrust investigation, and the summons of Ant Group officials have been withdrawn directly and indirectly from Alibaba.

The bad news continued last weekend. The Chinese financial authorities revealed the results of the summons of Ant Group officials, which urged Ant Group to return to its main business of’payment’ and to strictly stop selling financial products such as loans, insurance, and investment products. Content was included. The online financial product business, which accounts for more than 60% of Ant Group’s total sales, is on the verge of stopping.

As a result, Alibaba’s stock price fell more than 5% only in the morning market on the 28th. On the 24th, when the news of the launch of an antitrust investigation on Alibaba, Alibaba’s stock price plunged more than 8% and 13%, respectively, in Hong Kong and New York stock markets.