$BABA-SW (09988.HK)$ Chinese companies are starting to cut c...
$BABA-SW(09988.HK$ Chinese companies are starting to cut chives again and issue bonds to be used for company development and stock repurchase. What kind of operation is this?
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Thelord : Maybe they themselves are short
Jayn_Weak : to increase its EPS or if they want to maintain PE ratio, the share prices need to increase also. TLTR; buyback shares means a good sign for the company. are u holding $Alibaba (BABA.US)$ shares currently?
SFRE Keith Jayn_Weak : Share buyback is indeed a positive indicator for a company. However, it raises the question of why a convertible bond was issued for this purpose instead of utilizing the company's cash reserves.
Fran31 : Finding money to support Operations
SFRE Keith : Convertible bonds are used as value recovering and arbitrage tools for companies.
The group would repurchase around 14.8 mil of its ADRs at a price per ADR equal to USD 80.8 from related parties, with the proceed of around USD 1.2Bil