Chinese Economics Thread

Coalescence

Coalescence

Senior Member
Registered Member
dfrtyhgj said:
No it depends, if the buyback was to cancel the stock, then it's price neutral. It would be a return of cash to shareholders and shrinks the company. Hopefully they didn't do this type of buyback.
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I wonder if CPC would fake crackdown and regulations on companies as a strategy in the future in order get rid of foreign influence and consolidate their control over the company.
 
T

Tyler

Captain
Registered Member
victoon said:
share buy back has many practical benefits. Cash for R&D doesn't always bring better returns. Buy back and lead to higher stock prices, which reduces cost for M&A through stock swap.

also, Xiaomi and BABA are buying stock back from foreign hands at a very low price. remember, foreign listing is a way for foreign venture capitalists to exit China from their earlier rounds of investment.
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Major shareholders only sell their shares through block sales, not on the open market.
 
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