Dividends and buybacks

Longbridge - 财华社
财华社

[Financial Review] Which is stronger in the Hong Kong and US markets, share buybacks or dividends?

In today's volatile market, dividends and share buybacks often strengthen the short-term performance of listed companies. Firstly, it reflects the company's action to return profits to shareholders, demonstrating its solid financial and cash position, as well as confidence in the development prospects of the listed company. Secondly, it reinforces the per-share equity of existing shareholders. Thirdly, it boosts the buying confidence in the listed company in the short term. However, on the other hand, a significant increase in buybacks and dividends while cutting external investments and R&D may also hide concerns such as a lack of investment projects, insufficient entrepreneurial enthusiasm, and inadequate R&D ambition, raising investors' worries about its growth prospects. So...

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