Baidu approves 200 million dollar repurchase plan

Following Sohu, the Nasdaq:bidu board also announced approval of a stock repurchase plan to buy back $200 million trillion of US depository shares before the end of 2009.

According to incomplete statistics, since the second half of this year, the newly approved large repurchase scheme of the network companies have 7, and based on the previous plan to carry out frequent repurchase of the "Chinese concept stock" reached more than 10. The repo boom, aimed at boosting investor confidence, is spreading from entertainment companies to e-commerce companies.

　　Shares fall to 200 dollar pass

According to Baidu's announcement, the board has authorized Baidu to buy 200 million of dollars in US depository shares by the end of 2009, which will be traded at market prices through open markets, over-the-counter negotiations, bulk trading or other stock buybacks. The time and scope of repurchase will depend on market conditions, the transaction price of US depository shares and other factors, and are subject to the provisions of applicable law (including the rules of 10b-18 under the Securities Exchange Act of 1934) relating to repurchase volume, price and time.

Baidu said in the announcement: "Baidu is expected to be in line with market conditions and shareholder interest in the form of implementation of the stock repurchase plan." ”

The news was announced on November 3, after the trading day, Baidu shares fell slightly 0.62% to 204.72 U.S. dollars. The Nasdaq composite index rose 5.38 points on the day and received 1726.33 points, or 0.31%.

　　"China concept" frequently repurchase

An industry analyst believes that in the current implementation of the repurchase to meet three conditions, one is sufficient cash flow, the second is low enough, the third is the company's future confidence. "In fact, the vast majority of companies have fallen by 50% from the start of the year, some have even fallen by about 70%, and no company is going to advertise its own business, and the buyback will depend on the company's book finances." ”

and currently in the overseas listed network companies, the book funds the most abundant is the net swims the company, the comprehensive portal website and the auction rank advertisement Company.

Analysts say more companies will soon announce new stock buyback plans to boost investor confidence, increase equity ratios and even use option rewards as the stock market is depressed.

At the end of October, the Sohu board approved a three-year largest stock repurchase plan for 150 million dollars, and the time and quantity of repurchase will depend on the evaluation of market conditions, stock trading prices and other factors by Sohu management.

NetEase's board also approved a $100 million US depository repurchase plan in early September, which is valid for a period of not more than one year and is planned to be held in the open market, with the repurchase target being issued shares and the source of available working capital.

In August this year, the giant network announced plans to buy back $150 million worth of $200 million trillion in the United States depository shares in the next 12 months.

Tencent has been buying repurchase operations frequently this year, with a total repurchase of 1.3 million shares in September alone, 7 times. Tencent's investor Relations department said the repo stock was a source of equity incentive schemes. Because the company implements the management or the Employee Stock option plan, the direct issue of new shares will dilute the original shareholders ' equity, and the share of the shares by the repurchase shares to employees will not only meet the needs of the employee's shareholding, without prejudice to the interests of the original shareholders.

The reporter calls Sina related department, obtains the clear reply is Sina temporarily does not have the repurchase plan.