Geely Auto Sees Share Buyback by Chairman and Parent Group

Geely Auto has witnessed a significant share buyback led by its parent company, Geely Group, and Chairman Shufu Li. The buyback consisted of approximately 48.4 million shares, equivalent to about 0.5% of the total shares, and was conducted at an average price of HK$13.04. The total value of the transactions, which occurred between November 26 and 27, was HK$631 million.

Morgan Stanley analysts noted, "We believe this buyback by the parent group and Chairman Li reflects a strong confidence in Geely's recent restructuring and the potential synergies that may arise from the integration of various NEV (New Energy Vehicles) brands."

This move has increased Li's ownership stake in the company to 41.4%, valued at HK$54.8 billion. Geely Group now holds 39.22% of Geely Auto, worth HK$51.9 billion. The buyback demonstrates the company's leadership's ongoing commitment to investing in its own shares and supports its value in the eyes of investors and the market as a whole.

The recent buyback is not an isolated event. Chairman Li previously demonstrated his confidence in Geely Auto by purchasing shares in May 2018 and December 2016. These consistent buybacks by the Chairman indicate a pattern of strengthening stakeholder confidence across various market conditions.