Tencent to grant directors powers to buy back up to 10 per cent of company’s shares
- Buy-back will spur a rally in Tencent’s stock price as it shows the management is confident in the company’s fundamentals, says Norman Hui, analyst with Zhongtai International Securities
Tencent Holdings, operator of China’s biggest social media and video gaming business, said that the company will grant approval to the directors to buy back 10 per cent of shares at the annual general meeting.
Tencent, which has the biggest weighting of 9.9 per cent on the Hang Seng Index, said in a filing to the Hong Kong stock exchange that the repurchase is subject to shareholder approval during the AGM on May 15.
The Shenzhen-based company currently has a total of 9.52 billion shares in circulation.
Shares of Tencent closed up 1.1 per cent at HK$365 per share on Monday.
Tencent’s shares have been a beneficiary of a rising Hong Kong market, which entered bull territory on Monday. The Hang Seng Index rose 1.8 per cent, taking its overall gains to 20.2 per cent since a recent low in October.
Tencent’s shares have risen nearly 45 per cent since October 30, when it was trading at HK$252.20.