ZTE Corp. surged by the most since 2008 in Hong Kong trading after announcing a plan to spend as much as 1 billion yuan ($161 million) buying back shares in China.
ZTE jumped as much as 37 percent to HK$18.60, and traded at HK$19.00 at 9:47 a.m. Tuesday Hong Kong time. The stock rose by the 10 percent limit in Shenzhen to 19.76 yuan.
The maker of network equipment pledged to repurchase its Chinese shares at a cap of 17.96 yuan apiece in response to calls by the China Securities Regulatory Commission to safeguard stock markets, the Shenzhen-based company said in a statement on Monday.
ZTE joins other Chinese companies including Haitong Securities Co. in buying back stock as the Chinese government announced a slew of policy measures to support the stock market after a monthlong rout wiped off almost $4 trillion in value.
Trading in the company’s Hong Kong shares resumed today after it was suspended on July 9.