Hong Kong-listed companies are buying the dip in one of the world’s worst-performing stock markets.
(Bloomberg) — Hong Kong-listed companies are buying the dip in one of the world’s worst-performing stock markets.
Share buybacks there are surging as the market stumbles, defying the gains seen elsewhere around Asia.
The scale of such repurchases are expected to reach HK$92.9 billion ($11.9 billion), or 3.9 times higher than the prior five-year annual average of HK$23.9 billion, Hang Seng Indexes Co. said in a blog post on Tuesday. They’ve already reached about HK$73.5 billion.
The moves extend the buying spree from last year, when corporate stock repurchases jumped 175% as the Hang Seng Index slid. The benchmark has fallen around 9% in 2023, more than any other major regional index worldwide, according to data compiled by Bloomberg.
“This extraordinary high-level of buyback value might reflect that the corporates believe their listed shares in Hong Kong are undervalued,” HSI said in the post.
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