ZTE Rallies over 11% After Launching Long-Awaited Share Repurchase Plan

Market Focus
05/28

On May 28, ZTE Corporation (00763.HK) rose over 11% in regular trading.

The rally was driven by the company's first execution of its A-share buyback program. On May 27, ZTE spent RMB 670 million to repurchase 19.2591 million A-shares at prices ranging from RMB 34.44 to 34.98 per share. The buyback plan had been approved by the board last December but remained unexecuted for over five months, triggering persistent market doubts about the company's capital allocation commitment. Combined with Hong Kong-listed short interest reaching 19.76% — the highest among all Hong Kong-listed stocks — shares had been under sustained pressure.

The formal execution of the buyback effectively alleviated these concerns. Additionally, the company proposed a final dividend of RMB 4.11 per 10 shares for fiscal year 2025, pending approval at the shareholders' meeting scheduled for June 17.

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