Hong Kong stock repurchase stock refers to the use of cash and other means of listed companies from the stock market to buy the company's issued and outstanding shares, Hong Kong stock repurchase stock is not in any case, Hong Kong stock repurchase stock repurchase need to follow the Hong Kong stock repurchase stock system.
Do I have to cancel my Hong Kong stock repurchase shares?
Yes, Hong Kong stocks must be canceled after repurchasing stocks. After buying back the shares issued by the company, the listed company will need to cancel the part of the shares immediately, and the part of the shares canceled will become the listed company's treasury stock to be sealed up. These stocks are essentially private assets of the listed company because they are bought back with the company's cash, and it is likely that they will be used for equity incentives in the future.
After the company retains the repurchased shares as "treasury stock," the shares are still considered to be issued and outstanding, but they will not participate in the calculation of earnings per share and distribution, and in addition to being used for equity incentives, they can also be used to convert into bonds or resold when they are needed for cash flow. When applying for a buyback, Hong Kong stocks need to send an Explanatory Memorandum to shareholders and obtain a general authorization at a general meeting of shareholders, and then the shares can be repurchased during the next year's general meeting.
Hong Kong share buyback system
1Hong Kong share buybacks, the issuer (company) set up a mechanism that does not compete with secondary market traders for profits and is more for the purpose of dragging down the share price. Stocks in the rise or demand exceeds supply, the issuer is not allowed to compete with other investors in the secondary market to buy first; in the need to balance the stock price or oversupply, the issuer repurchase as an additional buyer can only repurchase.
2 Board of Directors meeting date and earnings release date before the month, Hong Kong stocks are not allowed to buy back shares, this is mainly to avoid insider trading, only after the board of directors and earnings release date can continue to buy back shares.
3 For each specific repurchase, no new shares are allowed to be issued to raise capital or to release new stock plans within 30 days afterward.
4 Hong Kong stock repurchases must be announced on the exchange the day after the repurchase.