China Feihe Unveiled Share Repurchase Plan to Offset Share Price Decline Due to Chairman’s Forecast that COVID-19 Vaccination Will Reduce Baby Powdered Milk Sales

“China Feihe (6186) unveiled a share repurchase plan yesterday, after the infant milk producer’s share price was battered by its chairman’s forecast that Covid-19 vaccination would hurt powdered milk sales…This came after chairman Leng Youbin said he expected a steep drop in powdered milk sales in the coming one or two years, since many parents can not prepare for pregnancy within six months after getting the Covid-19 vaccination, according to mainland media reports.”

(Note: It is unclear to me whether this is a voluntary delay on the part of parents due to safety concerns or a result of the injection itself.)

Feihe in US$200m buyback as shares plunge | The Standard

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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