Shares of COSCO Shipping Holdings Co., Ltd. (SEHK:1919) soared 5.47% on October 21, 2024, hitting a high not seen since mid-October. The surge came after the company announced plans to buy back 1-2 billion yuan ($140.82-281.63 million) worth of its Shanghai-listed A-shares within the next six months.

Share buyback programs are typically viewed as a positive sign by investors, as they signal the company's confidence in its future prospects and its commitment to enhancing shareholder value. By reducing the number of outstanding shares, buybacks increase the value of the remaining shares held by investors.

COSCO Shipping Holdings' buyback announcement followed recent moves by the People's Bank of China to kick off a $42 billion funding scheme aimed at supporting share purchases by listed companies. Several other major Chinese firms, including oil giant Sinopec and port operator China Merchants Port, have also announced buyback plans after securing special loans from banks under this scheme.