Shares of RoboSense Technology Co Ltd surged over 5% on Wednesday after the company announced plans to repurchase up to HK$300 million worth of its shares on the open market.

The Shenzhen-based company, which develops lidar sensors used in autonomous driving and other robotics applications, said it had resolved to buy back its shares from time to time on the Hong Kong stock exchange.

The move comes as RoboSense looks to boost investor confidence and support its share price amid volatility in technology stocks. Share buybacks are often viewed as a signal from management that a company's stock is undervalued.