Chinese Tech Giants Set Records with Massive Share Buybacks to Prop Up Slumping Stocks
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Chinese internet giants like Alibaba and Tencent are buying back record levels of their own shares to try to boost declining stock prices.
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Alibaba spent $12.5 billion on buybacks last fiscal year, the most ever for a Chinese tech firm, and has authorized $25 billion more through 2027.
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Tencent spent $6.3 billion on buybacks last year, 10 times more than the previous decade combined, and pledged to double that to over $12 billion in 2024.
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Other Chinese tech firms like Meituan, Kuaishou, and Xiaomi have also ramped up share buybacks in the past year.
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Buybacks are part of a broader Beijing campaign to stabilize Chinese stock markets after $4.5 trillion in market value was wiped out since 2021 peaks.