During the mid-year report season, technology stocks lead the way in the Hong Kong stock buyback frenzy. Which companies are worth paying attention to? The buyback trend in Hong Kong stocks is becoming more diverse, what impact will it have on the market?
With the end of the interim report season for Hong Kong stocks, the buyback market has become active again recently, and many industry leaders have successively announced large-scale buyback plans, causing a continuous buyback frenzy in the market.
According to Wind data, as of September 5th, the annual buyback amount of Hong Kong stocks has reached 187.6 billion Hong Kong dollars, compared to 67.8 billion Hong Kong dollars in the same period last year, a year-on-year increase of about 177%, significantly exceeding last year's total buyback amount of 126.9 billion Hong Kong dollars.
It is worth noting that this year, there has been a diversification trend among active companies in the Hong Kong stock buyback market.
As of September 5th, 230 Hong Kong listed companies have participated in buyback activities, far exceeding the 141 companies in the same period last year. In addition, although internet giants are still the main force in buybacks, many HK based companies in the consumer sector are becoming more active in the buyback market.
Specifically, Tencent is still the undisputed king in the current Hong Kong stock buyback market. As of September 5th, Tencent's total buybacks for the year amounted to approximately HKD 76.4 billion, triple the amount of the same period last year, accounting for 40% of the overall buyback volume in the market. $TENCENT (00700.HK)$ It is still the unquestionable king in the current Hong Kong stock buyback market. As of September 5th, Tencent's total buybacks for the year amounted to approximately HKD 76.4 billion, triple the amount of the same period last year, accounting for 40% of the overall buyback volume in the market.
In addition, among the top ten companies in terms of repurchase volume during the same period, Tencent, $MEITUAN-W (03690.HK)$Please use your Futubull account to access the feature.$KUAISHOU-W (01024.HK)$Please use your Futubull account to access the feature.$XIAOMI-W (01810.HK)$
Following the mid-year performance disclosure, Meituan announced a buyback plan not exceeding 1 billion US dollars (about 7.8 billion Hong Kong dollars) on August 28th. Kuaishou, on the other hand, announced a 6 billion Hong Kong dollar automatic buyback plan before the interim performance release, expected to be completed by May 30th next year.
Regarding Xiaomi, the company has been approved for a buyback quota of HKD 10 billion on June 6th. As of September 5th, its total buyback amount for the year has reached HKD 3.7 billion, approximately 6.4 times the buyback size during the same period last year.
It is worth mentioning here that $BABA-W (09988.HK)$ Nvidia. $JD-SW (09618.HK)$ Although the two e-commerce giants have previously announced large-scale repurchase plans, their repurchase of shares is mainly in the form of American Depositary Receipts (ADRs).
According to Zhejiang International's tracking data, in addition to technology stocks, the financial industry also has a relatively concentrated repurchase activity. Data shows that as of September 5th, $HSBC HOLDINGS (00005.HK)$N/A.$AIA (01299.HK)$The total amount of repurchases by the two old financial stocks reached 29 billion Hong Kong dollars and 22.85 billion Hong Kong dollars respectively, ranking second and fourth.
In addition, looking at different industries, in the Hong Kong stock buyback market in August, there were 19, 19, and 16 repurchases respectively in the consumer discretionary, medical care, and information technology sectors, highlighting the diversification and diffusion trend of the current Hong Kong stock buyback wave.
Among them, $ANTA SPORTS (02020.HK)$ As the leading domestic sports goods company, after announcing its interim results, it plans to spend no more than 10 billion Hong Kong dollars to repurchase company stocks, which also boosts the market's expectation for repurchases of non-technology and financial stocks.
Overall, concerns about Hong Kong stock profits have been alleviated after the interim reporting period, and leading companies in the technology and financial sectors have restarted their buybacks, becoming an important force in supporting Hong Kong stocks.
Analysts Yan Zhaojun and Chen Yahui from Zhongtai International pointed out in their report this week that after the Hong Kong stock interim reporting period, profit forecasts for the Hang Seng Index and the MSCI China Index for the years 2024 to 2026 have been revised upwards, mainly driven by the technology sector with high weightings. If there are actions that boost shareholder returns, such as increasing dividends and buyback sizes, it is also likely to stimulate a rebound in related stocks.
Editor/Somer