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Hong Kong-Listed Companies Spend $10 Million on Share Repurchases: What Investors Should Know

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On Thursday, a total of 38 companies listed on the Hong Kong Stock Exchange repurchased HK$810 million ($105 million) worth of their own shares. This trend highlights the opportunity some companies see in the current market conditions.

Two additional Hong Kong-listed companies, Yum China Holdings Inc. (YUMC) and KE Holdings Inc (BEKE), are also planning to make stock and ADR purchases, respectively, in the US trading session.

The Hong Kong Stock Exchange has underperformed in 2023, with shares down 18% year-to-date. This decline has attracted the attention of asset managers who view it as an opportunity to acquire undervalued stocks. Companies repurchasing their own shares can be seen as a positive indicator of their confidence in their future prospects.

Out of the 38 stock repurchases made on Thursday, 5 companies spent over $10 million on buying back their shares. Below, we list these companies in descending order of the amounts spent:

1. Concorde New Energy Group Limited

Concorde New Energy Group Limited repurchased $20.4 million worth of its shares, resulting in a 1.6% increase in the stock price. The shares are currently 17% lower year-to-date.

2. AIA Group Limited (AAGIY)

AIA Group Limited, an insurer, invested $16.4 million in repurchasing its stock, leading to a 0.8% increase in share price for the day.

3. Dongfeng Motor Group Company Limited (DNFGF)

Dongfeng Motor Group Company Limited spent $14 million repurchasing its own stock, but experienced a decline of 0.33% in share price. The company is down 33% year-to-date.

4. Xiaomi Corporation (XIACF)

Xiaomi Corporation bought back $11 million worth of its H-listed shares, resulting in a 1.5% dip in share price by market close. The company’s stock has remained flat since the beginning of the year.

5. Tencent Holdings Limited (TCEHY)

Tencent Holdings Limited made stock purchases worth $10.5 million, with shares rising 0.7% during the trading session. The company’s shares are down 14.2% year-to-date.

It’s important to note that stock repurchases may indicate positive sentiment from these companies, but it does not guarantee future performance. Investors should conduct their own thorough analysis before making any investment decisions.

Β© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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