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Alibaba Cash-Burning Buybacks Make Internet Bonds China’s Worst

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China’s Internet bonds are lagging behind as disappointing earnings and plans for buybacks to shore up slumping shares fuel concern finances will deteriorate.

Alibaba Group Holding Ltd., China’s largest e-commerce company, announced a $4 billion share repurchase last week, while Baidu Inc., its most-popular search engine, unveiled a $1 billion plan in July. Their bonds have contributed to a 0.4 percent loss on technology notes this quarter, the worst sector in a Bank of America Merrill Lynch investment-grade dollar note index for China that gained 0.4 percent.