(Yicai) March 13 -- Various firms listed on the Hong Kong Stock Exchange have reportedly been considering going private or delisting recently, amid low valuations and restricted liquidity. 

CIMC Vehicles Group announced on March 11 that it intends to buy back all H shares for HKD7.5 (USD0.96) apiece and delist from the Hong Kong market. The offer is a 4.9 percent premium to its closing price on the last trading day before the announcement. 

Delisting via privatization means major shareholders repurchase the stock in a listed firm at a certain price, with voluntary delisting following the buyback completion, a source experienced in investment in Hong Kong stocks explained. Most firms will offer a significant premium to appease shareholders, the source added, so privatization is mostly considered good news for market investors. 

There have also been reports that the founder of sportswear company Li Ning is considering taking the firm private. But the firm said it had no information about such a move, despite the recent fluctuation in its stock prices and trading volume. 

At least 18 Hong Kong-listed firms decided to delist in 2023, including Imax China, Dali Foods, and Yashili International Holdings, far more than in 2021 and 2022.

Firms have been motivated to go private in recent years by limited liquidity in the market, as well as low valuations and stock prices. 

Turnover in the Hong Kong securities market averaged HKD105 billion (USD13.4 billion) per day in 2023, down 16 percent from 2022, data from the exchange showed. According to data from Choice, the financial data terminal from East Money Information, the Heng Seng Index closed at 17,180 points yesterday, which was down about 44 percent from 2021's peak of 31,183 points. Also, the Hang Seng Tech Index has recently hovered around 3,500 points, over 60 percent lower than its highest level in 2021, the data showed. 

Editors: Shi Yi, Tom Litting