Montage Technology's (HKG:6809, SHA:688008) chairman and chief executive officer, Yang Chonghe, proposed a share buyback worth between 300 million yuan and 600 million yuan after the company's shares posted a decline of more than 20%, according to a Shanghai bourse filing on Friday.
Bourse rules said a share buyback is needed to safeguard the company's value and shareholders' interest after the Chinese chip designer's closing price dropped over 20% for more than 20 consecutive trading days as of Thursday, July 16.
The shares will be repurchased within three months after the board of directors' approval.
The company's Shanghai shares fell 9% during the morning trade, while its Hong Kong shares shed nearly 5%.