Chinese e-commerce company and technology giant Alibaba Group Holdings Ltd’s (NYSE: BABA) Shares fell 6.67% in Hong Kong as of this Monday. This came after the company’s announcement of plans to increase its share buyback limit by another $ 4 billion.
What happened: Alibaba’s share buyback program will now target a $ 10 billion repurchase by the end of 2022, 67% above the previous $ 6 billion limit.
The biggest magnitude of the buyback limit comes at a time when Alibaba’s shares were hit due to anti-competition polls from Chinese authorities.
China’s State Market Regulation Administration, the country’s market regulator, confirmed last week that it is examining Alibaba’s trade policy, which requires traders to work exclusively on its platform or choose a rival service.
After the crash on Thursday, Alibaba’s stock returns for the year were reduced to a 1.46% gain.
Why It Matters: The antitrust investigation follows comments from Alibaba co-founder Jack Ma about China’s financial system and lack of innovation.
The initial public offering of the payment services company supported by Alibaba, Ant Group, was interrupted after an investigation about a month ago. Chinese officials on Sunday instructed the subsidiary to shift its focus to its core payment services business, while aiming at Ant’s wealth management, insurance and lending services business.
Share Price: BABA shares closed 13.34% lower at $ 222 last Thursday.
See also: Why China cut Jack Ma’s Ant’s IPO hopes, experts explain
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