Alibaba Group Holding has increased its share repurchase program to $25 billion from $15 billion, in a sign on confidence from a company whose shares have been battered in recent trading sessions.
The repurchase program will be effective for a two-year period through March 2024, the NYSE-listed e-commerce giant said Tuesday.
Chinese technology stocks in Hong Kong, China and in the U.S.–where they are listed as American Depository Receipts–have taken a hit recently on growing worries that U.S. regulators may move to delist Chinese companies as soon as 2024 and signs that Beijing’s long-running regulatory crackdown has further to run.
In the year to date Alibaba’s ADRs are down nearly 13%, while its shares on Hong Kong’s Hang Seng Index are down nearly 17%.
As of March 18, Alibaba said it had purchased a total of 56.2 million ADRs under the previously announced buyback program for a total consideration of approximately $9.2 billion.
Separately, the company said that it has appointed Weijian Shan, executive chairman of investment group PAG, as an independent director to Alibaba’s board.
Mr. Shan’s appointment will be effective from March 31 and he will serve on the Alibaba board’s audit committee.