Alibaba Hikes Share Buyback Size To Record $25 Billion

INSUBCONTINENT EXCLUSIVE:
This is the second time Alibaba Group Holding Ltd has expanded its buyback programme in a year.Alibaba raised its share buyback programme to
$25 billion on Tuesday, the largest ever repurchase plan by the e-commerce giant, to prop up its battered shares as it fights off regulatory
scrutiny and concerns about slowing growth.The plan comes amid a tech stock rally in the past few days after Chinese Vice Premier Liu He
said that Beijing will roll out more measures to boost the economy as well as favourable policy steps for capital markets.This is the second
time Alibaba Group Holding Ltd has expanded its buyback programme in a year
It had hiked the programme from $10 billion to $15 billion last August.Shares of the company have cratered more than 50% in the past
year."The upsized share buyback underscores our confidence in Alibaba's long-term, sustainable growth potential and value creation," Deputy
Chief Financial Officer Toby Xu said."Alibaba's stock price does not fairly reflect the company's value given our robust financial health
and expansion plans."Alibaba's shares rose 4.8% in Hong Kong after the news
In the United States, its shares closed down 4.3% on Monday.Alibaba's buyback decision makes sense given how Beijing's measures against
monopolistic behaviour and the "disorderly expansion of capital" will limit its opportunities for new investments, said Rukim Kuang, founder
of Beijing-based Lens Company Research."Internet giants will start to re-focus on their main business in the future
As a result, it's not necessary for companies like Alibaba to keep such large amounts of cash on their books," he added.Alibaba said it had
$75 billion in cash, cash equivalent and short term investments as of end-December.The company has been under pressure since late 2020 when
its billionaire founder, Jack Ma, publicly criticised China's regulatory system.Authorities subsequently halted the planned blockbuster IPO
of its financial arm Ant Group and slapped Alibaba with a record $2.8 billion fine for anti-competitive behaviour, triggering a long slide
in its shares.Growing competition from rivals, slowing consumption, and a maturing e-commerce market have also hit its performance.In its
last earnings release, Alibaba posted a 10% year-on-year revenue growth, its slowest quarter since going public in 2014 and the first time
growth fell below 20%.The company is currently preparing to layoff tens of thousands of staffers, Reuters reported in March.Alibaba said it
had re-purchased about $9.2 billion of its U.S.-listed shares as of March 18 under its previously announced programme, which was slated to
last until the end of this year.The current $25 billion programme will be effective for a two-year period through March 2024.Alibaba named
Weijian Shan, the executive chairman of investment group PAG, as an independent director to its board, and said Borje Ekholm, the CEO of
Ericsson, will retire from Alibaba's board on March 31.