Chinese tech giants launch share buy-backs to revive investor confidence
To tackle increasing doubt among investors, several big names in Chinese tech, like Tencent, Alibaba, Meituan, and Xiaomi, have started buying back their shares. Tencent made a significant move in June by repurchasing nearly HK$10 billion (about US$1.27 billion) in shares, marking its largest buy-back this year. Just last week, Alibaba set aside over US$50 million for its own share repurchases. Meanwhile, Meituan announced a buy-back of around HK$200 million on Monday and Tuesday, prompted by comments from CEO Wang Xing regarding the company's lackluster stock performance. CFO Chen Shaohui expressed plans to speed up these buy-backs, while Citi Research analysts noted that with strong cash reserves, these companies could further boost their repurchase activities, indicating a potential market recovery.
Key facts
- Tencent repurchased nearly HK$10 billion (US$1.27 billion) of its own shares in June.
- Alibaba spent more than US$50 million on share repurchases last week.
- Meituan disclosed buy-backs of nearly HK$200 million on Monday and Tuesday.
- Meituan CEO Wang Xing acknowledged unsatisfactory stock performance at the annual general meeting.
- Meituan CFO Chen Shaohui said the company would accelerate buy-back plans.
- Citi Research analysts expect companies to accelerate buy-back pace.
- Analysts suggest a bottoming out could soon be in sight.
- Chinese tech stocks have hit alarming lows in recent trading cycles.
Entities
Institutions
- Tencent Holdings
- Alibaba Group Holding
- Meituan
- Xiaomi
- Citi Research
Locations
- China
- Hong Kong