Shares of HSBC Holdings rose to a six-month high at Friday’s midday trading pause in Hong Kong, bolstered by an announcement that plans to buy back its shares got underway Thursday in London.
HSBC rose 1.5 per cent to close the morning session at HK$53.8, its highest level since February 2.
The share ranked as the most heavily traded in Hong Kong, with volume of 897.40 million.
The bank, the largest lender in Hong Kong and Europe, said in a stock exchange filing on Friday morning that it has started its share repurchase programme on Thursday with an initial outlay of £10.27 million (HK$105.47 million).
HSBC, which is dual listed in Hong Kong and London, said the purchase was made on the London Stock Exchange from Goldman Sachs International, comprising 1.997 million shares at an average price at £5.14.
Following the purchase, HSBC will have 19.92 billion ordinary shares in issue, the bank said in the announcement.
HSBC unveiled a US$2.5 billion share buyback during its interim profit result announcement on Wednesday. The bank reported a 29 per cent fall in pre-tax profits for the six months to the end of June to US$9.7 billion, down by US$3.9 billion compared with last year.