Fanhua (FANH) said Monday that its board of directors has authorized increasing the company's share repurchase program by $20 million to raise the total authorized amount to $40 million.

The company said the share repurchase program is intended to improve shareholder returns and is an indication of its confidence in its long-term growth prospects.

"We firmly believe that the current stock price is significantly undervalued, as the stock trades at a substantial discount to our net cash value and net asset value and fails to reflect our long-term growth potential," Chief Executive Yinan Hu said in a release.

Price: 1.62, Change: +0.01, Percent Change: +0.62