Source: Chinese Brokerage. Latest data shows that foreign giants are still heavily buying Chinese assets. On June 5th, the latest data disclosed by HKEX showed that JPMorgan Chase added to its shareholding of many Chinese stocks in the Hong Kong stock market, including HKEX, and others, with a total amount of more than HK$3.3 billion in a day. As a foreign giant, JPMorgan Chase's attitude towards the Chinese stock market has attracted much attention from the market. Recently, Liu Mingdi, chief Asia and China stock strategist at JPMorgan Chase, publicly stated that since the end of October 2023, JPMorgan Chase has been fully optimistic about Chinese stocks. He believes that if the performance of Chinese companies improves and asset prices stabilize in the future, foreign investment may further increase the allocation of Chinese stocks. At the same time, the Hong Kong market is setting off a wave of buybacks. According to Wind data, as of June 4, there were a total of 168 Hong Kong stocks that implemented repurchases in 2024, an increase of 65 compared to the same period last year. The total amount of repurchases has reached HKD 89.927 billion, an increase of 171% from the same period last year.

Latest data shows that foreign giants are still buying up Chinese assets. On June 5th, the latest data disclosed by the Hong Kong Stock Exchange showed that JPMorgan increased its shareholding in multiple Chinese stocks, including,$CM BANK (03968.HK)$, $HKEX (00388.HK)$, $CTG DUTY-FREE (01880.HK)$, $BILIBILI-W (09626.HK)$And, the amount of goods swept within one day exceeded HKD 3.3 billion.

As a foreign giant, JPMorgan's attitude towards the Chinese stock market has been closely watched by the market. Recently, Liu Mingdi, JPMorgan's chief Asia and China stock strategist, publicly stated that JPMorgan has been bullish on Chinese stocks since the end of October 2023. He believes that if the performance of Chinese companies improves and asset prices stabilize in the future, foreign investment may further increase its allocation to Chinese stocks.

Bullish News: Foreign giants are crazy about buying Chinese assets. On June 5th, the latest data disclosed by HKEX showed that JPMorgan Chase added to its shareholding of many Chinese stocks in the Hong Kong stock market, including HKEX, and others, with a total amount of more than HK$3.3 billion in a day. At the same time, the Hong Kong market is setting off a wave of buybacks. According to Wind data, as of June 4, there were a total of 168 Hong Kong stocks that implemented repurchases in 2024, an increase of 65 compared to the same period last year. The total amount of repurchases has reached HKD 89.927 billion, an increase of 171% from the same period last year.

Bullish News

Foreign giants are going crazy buying Chinese assets, on June 5th the latest data disclosed by HKEX showed that JPMorgan Chase made a big increase in shareholding of many Chinese stocks in the Hong Kong stock market, specifically:

On May 30th, JPMorgan Chase added to its shareholding of HKEX (00388) by 6,471,767 shares, with an average price of HKD 263.7531 per share, for a total amount of approximately HKD 1.707 billion. After the increase, the latest number of holdings is 80,060,858 shares, and the latest shareholding ratio has increased to 6.31%.

On May 30th, JPMorgan Chase added 40,003,835 shares of CM Bank H shares with a price of HKD 35.351 per share, for a total amount of up to HKD 1.414 billion. After the increase, the latest number of holdings is about 303 million shares, and the latest shareholding ratio (H shares) has increased to 6.59%.

On May 30th, JPMorgan Chase added 739,187 shares of China Tourism Group Duty Free Corporation H shares, with an average price of HKD 65.0584 per share, for a total amount of approximately HKD 48.09 million. After the increase, the latest number of holdings is about 13.143 million shares, and the latest shareholding ratio has increased to 11.29%.

On May 30th, JPMorgan Chase added 1,436,454 shares of Bilibili H shares, with an average price of HKD 107.2068 per share, for a total amount of approximately HKD 154 million. After the increase, the latest number of holdings is about 28.019 million shares, and the latest shareholding ratio has increased to 8.3%.

As a foreign giant, JPMorgan Chase's attitude towards the Chinese stock market has attracted much attention from the market. Recently, Liu Mingdi, chief Asia and China stock strategist at JPMorgan Chase, publicly stated that since the end of October 2023, JPMorgan Chase has been fully optimistic about Chinese stocks. He believes that if the performance of Chinese companies improves and asset prices stabilize in the future, foreign investment may further increase the allocation of Chinese stocks.

Liu Mingdi pointed out that the current proportion of foreign investment in mainland stocks is relatively low. Although foreign investment has narrowed in April-May this year as the market rose, it is still at a low level. He believes that if the performance of Chinese companies improves and asset prices stabilize in the future, foreign investment may further increase the allocation of Chinese stocks. This view indicates that the Chinese stock market still has strong appeal to foreign investors and there is still ample room for foreign investment inflows. With the continued recovery of the Chinese economy and the deepening of reform and opening up, foreign investors' confidence in the Chinese stock market is expected to further increase.

In addition, Liu Mingdi also listed four types of Chinese stocks worth paying attention to, including companies that increase domestic market share, leading companies in segmented industries, export companies with outstanding global competitiveness, and companies related to AI themes.

At the same time, many foreign institutions, including UBS Group, Goldman Sachs, Morgan Stanley, Citigroup, and HSBC, have recently sung for A-shares and Chinese stocks. In the latest reports released, UBS raised the investment rating and target price of Goldman Sachs.

target price$CHINA MER PORT (00144.HK)$, $GWMOTOR (02333.HK)$raise$ALI HEALTH (00241.HK)$Target price raised to HK$9.5; Bank of America Merrill Lynch raised Bilibili's H-share target price to HK$140; HSBC raised the target price to HK$25.3.$XIAOMI-W (01810.HK)$Target price raised to HK$25.3.

While singing long, foreign institutions are increasing their A-share holdings with real money. Wind data shows that in May of this year, the net inflow of northbound funds was RMB 8.779 billion, which has been net inflow for four consecutive months. As of June 5th, the net inflow of northbound funds this year has reached RMB 82.26 billion, exceeding the full-year level last year.

Buying heavily with RMB 90 billion.

At the same time, Hong Kong stock market is ushering in a wave of share buybacks.

According to Wind data, as of June 4th, 168 Hong Kong-listed companies have implemented share buybacks this year, an increase of 65 compared with the same period last year; the total amount of buybacks has reached HK$89.927 billion, an increase of 171% compared with the same period last year.

Specifically,$TENCENT (00700.HK)$, $HSBC HOLDINGS (00005.HK)$, $AIA (01299.HK)$, $MEITUAN-W (03690.HK)$, $DONGYUE GROUP (00189.HK)$The buyback amounts of which rank top five are HK$34.294 billion, HK$16.423 billion, HK$9.867 billion, HK$7.174 billion, and HK$3.699 billion, respectively.

Among them, Tencent Holdings ranked first in buyback amount with HK$34.294 billion, a substantial increase of 260% compared with the same period last year. Since the beginning of the year, Tencent Holdings has had 38 trading days in buybacks, and buybacks of over HK$1 billion have been made 30 times.

Among the 168 companies that have implemented share buybacks, 34 companies have accumulated buyback amounts exceeding HK$100 million, including 12 companies with buyback amounts exceeding HK$1 billion. Among them,$KUAISHOU-W (01024.HK)$, $HANG SENG BANK (00011.HK)$, $SWIRE PACIFIC A (00019.HK)$and other companies spend more than HK$1.4 billion in share buybacks.

According to the Hang Seng Industry Classification, the number of buyback companies in the medical care, non-essential consumer, and news technology industries ranked first, with 33, 30, and 30 companies, respectively.

Analysts believe that a wave of share buybacks by listed companies usually means that the overall market is undervalued, and listed companies believe that their stock prices are far below their intrinsic value.

At the policy level, the HKEX continues to reform the repurchase mechanism to facilitate Hong Kong-listed companies’ repurchases.

In October of last year, the Hong Kong Stock Exchange issued the "Guidance for Listed Issuers to Conduct Automatic Share Repurchase Programs", which proposes that qualified listed corporations can repurchase shares through automatic share repurchase programs during the silent period of share repurchases, provided that they apply for exemption status from the Hong Kong Stock Exchange.

In April of this year, the Hong Kong Stock Exchange revised the "Listing Rules" and introduced a new mechanism for treasury stock, which allows listed issuers to hold repurchased shares in the form of treasury stock, and this will take effect on June 11th. The Hong Kong Stock Exchange stated that listed corporations can use treasury stock to stabilize their stock prices. When the stock price is low, the issuer can repurchase company stocks and convert them into treasury stock, sending a signal to the market that their shares are undervalued and boosting market confidence.

Institutional professionals say that a series of reforms are conducive to enhancing the enthusiasm and flexibility of Hong Kong stock market listed corporations to repurchase shares, and may further enhance the overall shareholder return level of Hong Kong stock market, therefore the repurchase wave in the Hong Kong stock market is expected to continue in the future.

Editor/tolk