Hong Kong-listed corporations are seizing the chance to acquire stocks in one particular of the worst-performing stock markets in the planet. 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 occasions 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 getting 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 observed in other big regional indexes worldwide.

Hang Seng Indexes Co. noted that this unusually higher level of buyback activity may well indicate that corporations think their listed shares are undervalued in Hong Kong.