Surge in Buybacks observed in One of the Global Market’s Worst Performers

Hong Kong-listed companies are seizing the opportunity to buy stocks in one of the worst-performing stock markets in the world. Despite other Asian markets experiencing gains, share buybacks in Hong Kong are skyrocketing as the market falters.

According to Hang Seng Indexes Co., share buybacks in Hong Kong are expected to reach HK$92.9 billion ($11.9 billion), which is 3.9 times higher than the average of the past five years. The total amount of share repurchases has already reached HK$73.5 billion.

This trend builds upon the buying spree of last year, when corporate stock repurchases surged by 175% as the Hang Seng Index declined. In 2023, the benchmark has already dropped around 9%, surpassing the declines seen in other major regional indexes worldwide.

Hang Seng Indexes Co. noted that this unusually high level of buyback activity may indicate that companies believe their listed shares are undervalued in Hong Kong.