Alibaba announced Tuesday it will double its share buyback program from $15 billion to $25 billion over two years, ending March 2024.
The Hong Kong-listed e-commerce giant’s stock rose over 11%.
Ericsson CEO Börje Ekholm was replaced by Weijian Shan, executive head of investment group PAG.
Alibaba’s Hong Kong-listed stock rose more than 11% on Tuesday after the Chinese e-commerce giant announced a $25 billion boost in its share buyback program.
The program will last for two years, until March 2024, the business said.
Alibaba has repurchased around 56.2 million American depositary shares (ADRs) worth approximately $9.2 billion. ADRs are traded in the US as proxy shares for overseas firms.
The Hangzhou-based e-commerce behemoth is attempting to bolster investor trust after its stock price plummeted by two-thirds since October 2020.
“Alibaba’s stock price does not adequately reflect the company’s value,” said Deputy Chief Financial Officer Toby Xu.
Alibaba has encountered challenges such as macroeconomic challenges and regulatory tightening in China, which resulted to a $2.8 billion antitrust penalties last year.