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Evergrande’s Aggressive Share Buybacks Fail to Impress

  • China developer’s share price remains below latest buyback
  • Evergrande bonds have recovered on debt reduction efforts
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China Evergrande Group’s latest round of share buybacks is falling flat with investors, even after the embattled developer snapped up shares at a premium and took major steps to avert a debt crisis.

The Chinese real estate firm resumed its buyback spree in the final quarter of 2020, spending HK$1.3 billion ($168 million) to buy shares for as much as HK$17.48 a piece. The buyback has done little to shore up the stock, which closed at HK$14.28 in Hong Kong Thursday. Falling for a second day on Friday, the shares are down 13% since the last buyback on Dec. 2, compared with a 4.3% gain in the benchmark Hong Kong index.