Hong Kong-listed firms are seizing the chance to purchase shares in one of many worst-performing inventory markets on this planet. Regardless of different Asian markets experiencing positive factors, share buybacks in Hong Kong are skyrocketing because the market falters.
In keeping with Dangle Seng Indexes Co., share buybacks in Hong Kong are anticipated to achieve HK$92.9 billion ($11.9 billion), which is 3.9 instances increased than the typical of the previous 5 years. The full quantity of share repurchases has already reached HK$73.5 billion.
This pattern builds upon the shopping for spree of final yr, when company inventory repurchases surged by 175% because the Dangle Seng Index declined. In 2023, the benchmark has already dropped round 9%, surpassing the declines seen in different main regional indexes worldwide.
Dangle Seng Indexes Co. famous that this unusually excessive stage of buyback exercise might point out that firms consider their listed shares are undervalued in Hong Kong.