Alibaba increases share repurchase program to $10 bln, shares fall

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Shares of Alibaba Group Holding Ltd listed in Hong Kong fell on Monday over 7% to HK$212.20 ($27.37) after the company raised its share repurchase program to $10 billion from $6 billion.

“This Share Repurchase Program will be effective for a two-year period through the end of 2022,” Alibaba said in a statement late on Sunday.

China’s market regulator launched an antitrust investigation into Alibaba last week, part of an accelerating crackdown on anticompetitive behavior in China’s booming internet space.

Financial regulators on Sunday also urged Ant Group Co, an Alibaba affiliate, to rectify financial regulatory violations, after Chinese regulators abruptly suspended Ant’s blockbuster $37 billion initial public offering in Shanghai and Hong Kong.

Alibaba rival internet companies Meituan fell over 5% and dropped more than 2%. ($1 = 7.7521 Hong Kong dollars) (Reporting by Kanishka Singh in Bengaluru and Yilei Sun in Beijing; Editing by Tom Hogue and Christian Schmollinger)

Credit: Financial Post

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