Chinese e-commerce enterprise and technology tree Alibaba Group Holdings Ltd (NYSE: BABY) shares fell 6.67% in Hong Kong on Monday at press time. This follows after the company announced its plans to increase its share buyback threshold by another $ 4 billion.
what happened: Alibaba’s share repurchase program will now repurchase $ 10 billion by the end of 2022, 67% higher than the previous $ 6 billion limit.
The larger size of the repurchase limit comes at a time when the Alibaba share has been hit hard by the rival ventures of Chinese authorities.
China’s state administration for market regulation, the country’s regulator, confirmed last week that it was examining Alibaba’s trader policy, which requires traders to work exclusively on its platform or choose a competitive service.
Following the crash on Thursday, Alibaba returns were reduced to a 1.46% profit on an annual basis.
Why does it matter?: The antitrust investigation comes in the wake of Jack Ma, co-founder of Alibaba, about China’s financial system and the lack of innovation.
The initial public offering of the group service company Ant Group, which is backed by Alibaba, was stopped after an investigation about a month ago. The Chinese authorities on Sunday instructed the subsidiary to shift its focus to its core payment services industry, while targeting Ant’s wealth management, insurance and lending services businesses.
Price action: BABY stock closed 13.34% lower at $ 222 last Thursday.
See also: Why China shook off Jack Ma’s abuse, experts hope
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