China's internet titans buy their own shares to support fallen stock prices

Chinese internet firms are buying back their shares at a record pace to improve their market value amid a historic stock meltdown in the world's second largest economy.

Alibaba Group (BABA) reported Tuesday that it purchased back $12.5 billion of US and Hong Kong shares, 5.1% of its total, in the fiscal year ended March 31.

Alibaba bought back $4.8 billion in the first quarter, its second-largest quarterly repurchase.

Because fewer shares are available, share buybacks normally raise prices.

In the past year, Alibaba stock has lost about 25%.

The tech giant's action comes as Chinese officials urge listed companies to repurchase shares to boost market confidence.

Over $4.5 trillion in market value has been lost from Shanghai, Shenzhen, and Hong Kong stock markets since 2021.

According to public data, Tencent spent a record 49 billion Hong Kong dollars ($6.3 billion) repurchasing shares in 2023, more than it had spent in the previous decade.

Tencent shares fell 20% in the past year.