Alibaba Expands Share Buyback Program to 30.5 Trillion KRW to Boost Stock Price

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Chinese company Alibaba announced that it will increase its share repurchase program to $25 billion (approximately 30.5 trillion KRW), expanding it by $10 billion from the previous amount to boost its stock price.

According to the Wall Street Journal (WSJ) and others on the 21st (local time), Alibaba stated that the share repurchase program will be valid for the next two years until March 2024. Alibaba had previously increased the repurchase amount from $10 billion to $15 billion last August, and this is another increase.

Xu Hong, Alibaba's Deputy Chief Financial Officer (CFO), said, "We are expanding the share repurchase program to emphasize our confidence in Alibaba's long-term and sustainable growth potential and value creation," adding, "Alibaba's stock price does not properly reflect the value based on solid financial soundness and expansion plans."

This expansion of Alibaba's share repurchase program came after Liu He, China's Vice Premier, expressed his intention to stimulate the Chinese economy, stabilize the stock market, and support Chinese companies' overseas listings. Alibaba has faced government crackdowns since the end of 2020, after Chairman Jack Ma criticized Chinese authorities' regulations, resulting in fines and various regulatory measures.

As a result, Alibaba posted earnings shock-level results in the fourth quarter of last year. Fourth-quarter revenue increased by 10% year-on-year to 242.58 billion yuan, marking the slowest growth since its listing on the New York Stock Exchange in 2014. Recently, a foreign media outlet also reported that Alibaba is preparing to lay off tens of thousands of employees.