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Share buy-backs decline in Hong Kong after five years of boom
Share repurchases fall sharply, indicating the city's market is fully valued after cheap debt encouraged companies to go on spending spree
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Following a big spike in the past five years, share buy-backs by Hong Kong firms are in decline.
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At the rate seen in the year to date, Hong Kong will see just a quarter of the buy-back approvals granted last year, according to S&P Capital IQ, a data firm.
Buy-backs are an indicator that a company sees its shares as undervalued, and are often viewed by investors as a signal to buy the stock.
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The decline in buy-back approvals could be interpreted as a sign that the market was fully valued, said Philip Lee, an S&P Capital director.
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