As much as eight businesses engaged in property development have bought back their own stock, making the amount go up as high as US$560 million.
Property developers in Hong Kong took matters into their own hands and bought their shares back in a bid to keep their businesses propped up. According to SCMP, the reason is to jump-start a pale market. However, financial analysts, as well as fund managers, are on the same page; they don't think this method will help the sliding market recover.
As much as HK$4.4billion (USD$560.7 million) went around as these property developers went about buying their own shares back. One of these, China Evergrande, spent about three-fourths of the amount alone, but that may put it more trouble due to existing stock exchange rules about the free float policy. Other companies include China Jinmao Holdings, Logan Property Holdings, and Shimao Property Holdings.
Most of the problems, Yicai Global reveals, stem from a common, yet very persistent problem-the trade dispute imposed on China by the Trump administration.
Most of the shareholders reacted thus by buying at least a few or at most all of their shares. Aside from the property developers already listers, there are at least 80 more firms ready to buy back their shares. The biggest buyback outside of the property developers stands at 1 billion yuan (USD 154 million.)
It's a big problem if it doesn't get controlled. Most businesses have pledged to sell half, forty percent, or thirty percent of their company. That doesn't sound good and the Chinese market is in danger of going into a free fall if things fail to pick up when they should.
In comparison, this is the highest buyback there's ever been in the Hong Kong stock exchange. About sixty-three companies selling at HK$10.3 billion are set to eclipse the biggest average so the far-the period between 1992 and 2017 yielded an HK$761 million buyback.
Things aren't positive, despite the buyback. Analysts remain convinced that this latest round of trying to save the property market won't end up on a high note.
