In the midst of a storm, industry giants in network technology are attempting to create a stock market bottom with billions of funds.
According to Snow Leopard Financial News, in the past nearly a year, the total amount of repurchases announced by Hong Kong-listed network technology stocks and well-known US-listed Chinese concept stocks amounts to at least approximately 300 billion RMB, including tens of billions of USD from Alibaba and tens of millions of USD from Mogu Inc.
If we start counting from May 2021, the "sixth buyback trend" in the Hong Kong stock market has lasted for nearly a year (the fifth buyback trend ended in January 2020). As of April 21, 2022, the buyback amount of Hong Kong-listed companies has reached 16.5 billion Hong Kong dollars, a year-on-year increase of 140%, nearly half of last year's total buyback amount.
In the US stock market, Alibaba in the Chinese concept stock market. $Alibaba (BABA.US)$Announced a massive $25 billion buyback in March this year, triggering a domino effect in the market, with Chinese concept stocks and Hong Kong-listed network technology giants such as Xiaomi joining the buyback frenzy. $XIAOMI-W (01810.HK)$Announced a HK$10 billion buyback, Tencent started buybacks for 14 consecutive trading days at the end of March, and has already spent over HK$6 billion since the beginning of the year.
In 2022, what sets this wave of buybacks apart? What future turbulence lies behind these key differences?
The sixth wave.
Generally speaking, when a company repurchases shares, it is because it believes the current stock price is significantly lower than the intrinsic value, so it repurchases shares to convey confidence to the market and stabilize...