Kingdee International's stock surged 5.5% at open, rebounding from recent declines that had been driven by the company's confirmed removal from the Hang Seng Tech Index.
The approaching effective date of the index deletion had triggered passive fund outflows, pushing the stock to new lows throughout late May. However, the company's management conducted share repurchases to support the stock, buying back shares on consecutive days prior to today's rebound.
Today's bounce appears linked to the phased exhaustion of selling pressure combined with the buyback floor effect established by the company's recent repurchase activities.
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