GT Online: Executive Buyback won’t Save Ping An Group from Failure

Written by: WENJIE

Translated by: billwilliam

Proofread by: Ermat

Image source: Sohu

As soon as Mr. Miles Guo, founder of the Whistleblower Movement, revealed the equity composition of Ping An Group’s core asset Lufax, on the next day Ping An Bank (another subsidiary of Ping An Group) announced that its chairman is leading the charge in share buyback.

Following the example of Ping An Group, senior executives of Ping An Bank also initiated buyback of their own stock, according to Sina Finance. On September 6, Ping An Bank stated that nine senior executives of Ping An Bank—including the chairman—and their spouses, had purchased a total of 372,700 shares of Ping An Bank, at a settlement price in the range between 6.39 to 6.91 million RMB. Prior to this, seven senior executives of Ping An Group also bought shares of Ping An Group. According to Ping An Group’s announcement in the evening on August 26, the board of directors reviewed and approved the buyback plan for A-shares—the management pledged to increase its holding of the company’s shares. Ping An Group tentatively planned to repurchase A shares at prices not exceeding 82.56 RMB per share for a total buyback size of 5-10 billion RMB.

I believe Ping An Group’s 10 billion RMB buyback is nothing compared to Ping An Bank’s 360 billion RMB market cap and Ping An Group’s nearly 1 trillion RMB market cap. Since Mr. Guo’s revelation of financial tricks in Ping An Group, investors lost confidence in Ping An Group and related companies, which is bound to trigger a series of chain reactions. It is only a matter of time before the collapse of Ping An Group and its subsidiaries. No matter how hard Ping An Group tries in stock buyback, this can’t save it from the fate of being delisted.

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