It is reported that recently technology companies, including Alibaba (09988), have issued convertible bonds, raising billions of dollars, part of which will be used for share buyback of American depositary shares.
According to the report, a large investment bank has requested that the Hong Kong Stock Exchange (00388) relax its regulations to allow listed companies to issue convertible bonds and use the funds for share buyback. The report quoted a response from the Hong Kong Stock Exchange as saying that it did not comment and would continue to study ways to improve competitiveness and market efficiency for issuers and investors.
It is reported that recently, tech companies such as Alibaba (09988) have issued convertible bonds, raising billions of dollars and using some of the funds to repurchase American depositary shares.
According to reports, if Hong Kong wants to use convertible bonds raised by technology companies for share buyback, it requires approval from a temporary shareholder meeting, so it cannot be completed quickly. In addition, banks and law firms have met with the Hong Kong Stock Exchange.