Hong Kong-listed organizations are seizing the chance to invest in stocks in 1 of the worst-performing stock markets in the globe. In spite of other Asian markets experiencing gains, share buybacks in Hong Kong are skyrocketing as the industry falters.
According to Hang Seng Indexes Co., share buybacks in Hong Kong are anticipated to attain HK$92.9 billion ($11.9 billion), which is three.9 instances greater than the typical of the previous 5 years. The total quantity of share repurchases has currently reached HK$73.five billion.
This trend builds upon the obtaining spree of final year, when corporate stock repurchases surged by 175% as the Hang Seng Index declined. In 2023, the benchmark has currently dropped about 9%, surpassing the declines noticed in other significant regional indexes worldwide.
Hang Seng Indexes Co. noted that this unusually higher level of buyback activity may possibly indicate that organizations think their listed shares are undervalued in Hong Kong.
/cloudfront-ap-southeast-2.images.arcpublishing.com/nzme/B3V3ASOZ7JGRFBJ7MQ664TZZIU.JPG)