On Sept. 27, the Hang Seng Index briefly broke its lowest level since November 25, 2011. As the index continues to hit new lows, Hong Kong stocks began a storm of buybacks. After-hours data show that Tencent, Weichai Power, AIA Group Limited, Great Wall Motor and other Hong Kong stock companies announced large-scale buybacks. In addition, southward funds also bought HK $793 million.

The Hang Seng Index is falling lower and lower, while Hong Kong companies and southbound funds are constantly adding weight to the bottom. This month, more than 100 companies repurchased HK $14.9 billion, while southbound funds bought a net HK $28.972 billion this month. September data show that domestic public offering fund products also continue to copy the bottom of Hong Kong stocks.

For the whole year, the repurchase amount of Hong Kong stock companies reached 62.1 billion Hong Kong dollars, and the amount of southward funds buying Hong Kong stocks reached 247 billion Hong Kong dollars, totaling 309.1 billion Hong Kong dollars.

Tencent, CK Asset and many other Hong Kong stocks continue to overweight their buybacks.

After trading on September 27, a number of Hong Kong stock companies, including Tencent, AIA Group Limited, XIAOMI Group and CK Asset, issued buyback announcements.

TencentOn September 27th, the company repurchased 1.26 million shares at a repurchase price of HK $275.4-HK $283, at a total cost of about HK $352 million.

Tencent's buyback amount reached 19.513 billion Hong Kong dollars this year, continuing to refresh the maximum repurchase amount of Hong Kong stocks this year. It is worth noting that Tencent has carried out repurchases for 27 consecutive trading days this year, and the cumulative number of repurchases during the year reached 64, with a total of 57.5744 million shares.

The total amount of Hong Kong stock buybacks ranks second this year.AIA Group LimitedIt also continued to increase its buyback on September 27. AIA Group Limited said in a notice on the Hong Kong Stock Exchange that it spent about HK $178 million to buy back 2.615 million shares at a repurchase price of HK $67.9-HK $68.60. AIA Group Limited made a total of 106 buybacks during the year, with a total repurchase amount of HK $17.015 billion.

Owned by Hong Kong tycoon Li Ka-shingCK AssetOn September 27th, it spent about HK $62.94 million to buy back 1.27 million shares. CK Asset has bought back 41 times so far this year, totaling 32.37 million shares, with a total repurchase amount of HK $1.69 billion.

Lei Jun'sXIAOMI GroupA total of 2.6 million shares were repurchased at a cost of about HK $25.22 million on September 27, and 43 repurchases have been made so far this year, with a total repurchase amount of HK $2.169 billion.

In additionGreat Wall MotorIt spent about HK $317 million to buy back 30.5 million shares, Swire AG A HK $42.2221 million to buy back 717500 shares, and JD Health HK $12.86 million to buy back 717500 shares.

Since the beginning of this year, a total of 4.948 billion shares have been repurchased by listed companies in the Hong Kong stock market, with a total amount of HK $62.1 billion, which has far exceeded that of the whole of 2021 and reached an all-time high. For the whole of 2021, a total of 188 companies repurchased 4.815 billion shares, with a total repurchase amount of HK $38.068 billion.

Buybacks are generally considered to have a very positive significance in maintaining the share prices of listed companies. In the case of the poor overall macro environment of the market, buybacks will support the value of the company and partly reduce the panic caused by the macro environment to investors in 2022.

The Hang Seng Index closed at its lowest level in nearly 11 years.

Recently, the continuous decline of Hong Kong stocks is the main reason for Hong Kong stock companies to speed up the progress and intensity of buybacks.

The global stock market was sold off and the Hong Kong stock market was not immune after the Federal Reserve raised interest rates by 0.75 percentage points for the third time in a row and hinted at a further sharp rate hike.

On Sept. 27, the Hang Seng index fell to an intraday low of 17648.42, its lowest level since November 25, 2011. Hong Kong stocks rebounded from a 1 per cent decline in the afternoon to close red.

The Hang Seng Index has fallen 23.67% so far this year, falling for three consecutive years. The Hang Seng Technology Index has fallen 35.33% this year, with many weighted stocks falling sharply.

Hong Kong stock prices continue to fall, and Hong Kong stock valuations are at record lows. Data show that Tencent's rolling price-to-earnings ratio is as low as 13.1, which is in the 2.3% historical quantile over the past decade. The latest price-to-earnings ratio of the Hang Seng index is as low as 8.6 times, below most of the time range since the index was released.

Xingsheng International said that the short-selling capacity of Hong Kong stocks has been fully released after a series of falls, and the impact of the rise in US dollar interest rates and the sharp fall in US stocks has gradually been digested. The sharp rebound in A-shares has given a big boost to market confidence. The recent market rebound will be obvious, science and technology Internet and medical biology two popular plates to take the lead to rebound, indicating that the low level of acceptance has been strengthened.

In sharp contrast, the public utilities sector, which is more resistant to falling or even rising against the market some time ago, has begun to fall, indicating that market sentiment has obviously shifted from defense to moderate initiative. In addition, the liquidity of Hong Kong stocks has improved, and the turnover of the main board has increased significantly for two consecutive days. At present, it is more emotional fluctuations that affect the market.

Overall, Hong Kong stocks showed a low and weak rebound, and there will be competition in the Hang Seng Index around 18000 points. The recovery of market turnover is a positive sign, but further volume is needed to confirm the recovery of liquidity.

Public offering funds copy the bottom of Hong Kong stocks on a large scale.

In addition to the continuous repurchase of listed companies to support the company's share price, since September, with the continuous adjustment of Hong Kong stocks, there has been a strong intention to attract funds for bargain.

As of September 27, southbound funds had a cumulative net inflow of HK $28.972 billion in September, the 13th consecutive month of net purchases. In the long run, southbound funds have a total net inflow of HK $247 billion so far this year. It is worth noting that southbound funds have bought Tencent for 20 consecutive days, totaling about HK $6.322 billion.

Judging from the total share of ETF invested in Hong Kong stocks, Hong Kong stocks ETF continued to receive net applications from holders in September. Such as Hang Seng ETF$HENGSHENGTONG (513660.SH)$、$Hang Seng TECH Index ETF (03032.HK)$、$ChinaAMC Hang Seng Tech Index ETF (513180.SH)$、$CAMC HS Sci-Tech ETF QDII (513330.SH)$The total share has increased by 2.432 billion, 1.347 billion, 914 million and 894 million respectively since the beginning of this month.

The above ETF mainly tracks listed companies in Hong Kong, including Internet leading companies such as Tencent, Meituan, BABA, XIAOMI and JD.com, as well as biomedical and communications companies listed in Hong Kong.

Recently, information disclosed by the Hong Kong Stock Exchange also shows that Yi Fangda Fund has continuously increased its position in Hagia Medical, a leader in private oncology medical services, on the 14th and 22nd, with a shareholding ratio of more than 5% and 6% respectively, exceeding the listing line, and it currently holds 37.2722 million shares. Hagia Healthcare is a Hong Kong stock company held by public offering funds. Many star fund managers hold Hagia Healthcare, such as Zhang Kun and Chen Hao of Yi Fangda, Xie Zhiyu of Xingzheng Global, he Shuai of BoCom Schroeder, Fu Pengbo of Ruiyuan, etc. However, Hygia Healthcare shares have been falling since last June and have now halved.

Affected by the news of the listing of the public offering giant, the share price of Hagia Medical was boosted, and the stock rose 4.56% and 8.83% respectively in the past two days. Yi Fangda's latest stake has a market capitalization of HK $1.815 billion.

From the second quarterly report of public offering funds, we can also see that the funds are adding weight to copy the bottom of Hong Kong stocks. By the end of the second quarter of this year, the total market value of Hong Kong stocks allocated by active equity funds reached 362.5 billion yuan, accounting for 6.62% of the total net asset value, an increase of 1.07% over the first quarter, ending four consecutive quarters of decline, and public equity funds regained confidence in Hong Kong stocks.