Raise in buybacks observed in 1 of the worst organizations in the international industry

Hong Kong-listed organizations are taking benefit of the chance to obtain shares on 1 of the worst stock exchanges in the planet. Regardless of other Asian markets generating gains, share buybacks in Hong Kong are surging as the industry falters.

Hong Kong share buybacks are anticipated to attain HK$92.9 billion ($11.9 billion), three.9 instances the typical more than the previous 5 years, according to Hang Seng Indices Co. The total quantity of share buybacks has currently reached HK$73.five billion.

This trend builds on a surge in purchasing final year, when corporate share buybacks surged 175% as the Hang Seng index fell. In 2023, the benchmark has currently fallen by about 9%, outpacing the declines noticed in other significant regional indices about the planet.

Hang Seng Index Co. noted that this unusually higher level of buyback activity may possibly indicate that organizations think their listed shares are undervalued in Hong Kong.