Is it a signal for Chinese concept stocks to hit bottom? Internet giants are aggressively repurchasing stocks.

During the downturn in the stock market, the two giants of the Internet industry, Alibaba and Tencent, sent a signal of the market bottom by repurchasing a large number of shares. In 2023, Alibaba used $9.5 billion to repurchase shares, while Tencent's repurchase actions were even more frequent, with a total repurchase amount of nearly HKD 50 billion and over 120 times throughout the year. Share repurchase is one of the common means of market value management for listed companies, especially when stock prices are undervalued, it can effectively boost investor confidence. Behind the repurchase actions, the confidence of the company's management is evident. Through repurchases, companies can reduce the number of shares in circulation, thereby increasing earnings per share and conveying positive information to the market. Alibaba stated that by the end of 2023, the company's outstanding shares had decreased by 3.3% and still retained a repurchase budget of $11.7 billion. This behavior not only demonstrates recognition of its own value but also shows optimism about the future market trend. Since 2020, Alibaba's repurchase budget has increased from $10 billion to the current $40 billion, which is a clear signal of confidence in the company's long-term development strategy. Tencent's actions also demonstrate confidence. On January 3, 2024, Tencent repurchased 3.36 million shares on the open market, investing HKD 1.002 billion. This action was carried out on the basis of the full-year repurchase in 2023, with the total repurchased shares accounting for 1.47928% of the issued shares, clearly expressing a firm belief in the company's future development.