TL;DR
Hongkong Land, Keppel Corp and Yangzijiang Financial Holdings have been aggressive with share buybacks recently. Some investors may view these share buybacks as a signal of management confidence towards the company’s prospects. These 3 companies have some exposure to the Chinese property market, which is facing rising risks from defaults currently. Apart from share buybacks, we would also be looking out for signs of improvement in the Chinese property sector.What happened?
One of the metrics that investors often screen for when looking for interesting stock ideas, is the share buybacks made by companies and their senior management.Some investors may view these share buybacks as a signal of management confidence towards the company’s prospects.
It could be a sign that management believes the shares are undervalued, and buybacks are the best use of its capital compared to investing into the business for growth or paying out as dividends.
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