Hong Kong-listed firms are seizing the chance to purchase shares in one of many worst-performing inventory markets on the planet. Regardless of different Asian markets experiencing good points, share buybacks in Hong Kong are skyrocketing because the market falters.
Based on Cling Seng Indexes Co., share buybacks in Hong Kong are anticipated to achieve HK$92.9 billion ($11.9 billion), which is 3.9 occasions greater than the common of the previous 5 years. The entire quantity of share repurchases has already reached HK$73.5 billion.
This development builds upon the shopping for spree of final 12 months, when company inventory repurchases surged by 175% because the Cling Seng Index declined. In 2023, the benchmark has already dropped round 9%, surpassing the declines seen in different main regional indexes worldwide.
Cling Seng Indexes Co. famous that this unusually excessive stage of buyback exercise could point out that firms imagine their listed shares are undervalued in Hong Kong.
