Why is Zhongji unveiling US$1.2 billion in buy-backs before its Hong Kong debut?

Zhongji Innolight’s buy-back plan – worth as much as 8 billion yuan (US$1.2 billion) in the run-up to its offshore listing in Hong Kong – may give global investors an anchor for pricing, as the Chinese supplier of US hyperscalers seeks to pre-empt a shaky start to trading in the city.The Chinese maker of optical transceivers used in Artificial Intelligence (AI) data centres said it would repurchase its Shenzhen-listed shares for between 4 billion and 8 billion yuan, through its own or borrowed funds, it said in an exchange statement on Tuesday night, just two days before Zhongji’s high-profile Hong Kong debut on Thursday.The buy-back came on the heels of a sell-off in Zhongji’s yuan-denominated stock, which was closing in on the offer price of HK$980 for the Hong Kong initial public offering (IPO).