Over HK$100 Billion in Buybacks: Over 200 Hong Kong-Listed Companies Actively Repurchasing Shares, with Industry Giants Leading the Surg

Since the beginning of this year, the buyback frenzy in the Hong Kong stock market has continued to intensify, becoming a central focus in the capital markets. Entering July, the trend remains strong, with 69 companies participating in share repurchases within just over 20 days, totaling approximately HK$8.9 billion. Over the course of the year, around 210 Hong Kong-listed companies have launched buyback plans, repurchasing approximately 4.5 billion shares, with cumulative expenditures surpassing the HK$100 billion mark, reflecting robust repurchasing momentum.

Leading enterprises have demonstrated remarkable activity in this wave of buybacks. Eleven companies have repurchased more than 100 million shares, with AIA Group, Youzan, COSCO Shipping Holdings, and HSBC Holdings each exceeding 200 million shares. Tencent Holdings has become the market benchmark with over HK$40 billion in repurchases, while HSBC Holdings, COSCO Shipping Holdings, and many others have also engaged actively. Several companies are experiencing simultaneous stock price appreciation and buyback activity, highlighting positive feedback between corporate action and market valuation. According to industry observers, buybacks signify strong corporate confidence and ample liquidity. With current Hong Kong stock valuations at appealing levels, combined with supportive policy and capital conditions, buybacks are infusing new momentum into the market.

The enthusiasm for buybacks in the Hong Kong market has persisted into July. Wind data shows that as of around 16:00 on July 22, 69 listed companies in Hong Kong had carried out share repurchases this month, totaling approximately HK$8.9 billion. This continues the year's active buyback trend, as improving market sentiment has prompted increased repurchasing by listed companies. In total, approximately 210 Hong Kong-listed firms have initiated buyback plans in 2024, involving 4.5 billion shares and an aggregate expenditure exceeding HK$100 billion.

Some industry leaders have undertaken particularly significant repurchase programs. Eleven companies have each repurchased over 100 million shares, including AIA Group, Youzan, COSCO Shipping Holdings, HSBC Holdings, Winning Group, China Hongqiao, Chow Tai Fook, COSCO Shipping Development, Sihuan Pharmaceutical, China Eastern Airlines Corporation, and Concord New Energy, covering sectors such as finance, shipping, consumer goods, and pharmaceuticals. Among them, AIA Group, Youzan, COSCO Shipping Holdings, and HSBC Holdings have each exceeded 200 million shares in buybacks.

In terms of repurchase value, Tencent Holdings leads the Hong Kong market, with total buybacks exceeding HK$40 billion this year. Historical data shows a clear upward trend in the company’s repurchase activity: approximately HK$2.6 billion in 2021, HK$33.8 billion in 2022, HK$49 billion in 2023, and a notable rise to HK$112 billion in 2024.

Notably, since 2021, the overall buyback scale in the Hong Kong stock market has demonstrated a steady stepwise increase. In 2021, total repurchases were under HK$40 billion; by 2022, the figure surpassed HK$100 billion. In 2023, it rose to around HK$130 billion, and in 2024, it surged past HK$200 billion.

Several leading enterprises have shown a favorable trend of stock price increases in parallel with share repurchases. These companies have steadily appreciated in value as confidence in the market has recovered, establishing a positive feedback loop between buybacks and stock performance. As of July 22, Tencent Holdings’ stock price had risen more than 25% year-to-date, corresponding with its aggressive repurchase activity and demonstrating market recognition of its value.

HSBC Holdings and AIA Group have also conducted sizable buybacks, second only to Tencent Holdings. HSBC Holdings has repurchased 231 million shares this year for approximately HK$20.1 billion, while AIA Group has repurchased 292 million shares, expending around HK$17.7 billion. These two financial heavyweights have played key roles in supporting the market. Their stock performances reflect their buyback activity, with HSBC Holdings up more than 35% and AIA Group up more than 25% year-to-date, validating market recognition of high-quality enterprises.

Other companies such as COSCO Shipping Holdings, China Hongqiao, and Kuaishou have also been actively involved. COSCO Shipping Holdings has repurchased 237 million shares this year at a cost of HK$2.96 billion; China Hongqiao repurchased 187 million shares for HK$2.611 billion; and Kuaishou repurchased 38.8 million shares for HK$1.916 billion. These companies have also posted impressive stock performance—COSCO Shipping Holdings has risen more than 10%, China Hongqiao over 90%, and Kuaishou more than 70%—demonstrating a positive correlation between repurchase efforts and market valuation.

"Buybacks can enhance earnings per share by reducing the number of outstanding shares, which may drive up stock prices. They also serve as a capital management tool that improves capital efficiency. Furthermore, buybacks can increase shareholder value, particularly when companies lack high-return investment opportunities and choose to use idle funds for repurchases, thereby improving shareholder returns. Finally, buybacks can strengthen market confidence, especially during periods of market weakness, by signaling confidence in business prospects," said Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance.

Industry consensus holds that the wave of buybacks demonstrates both confidence in long-term corporate value and healthy corporate cash positions, resonating with shareholder optimism. Looking ahead, current Hong Kong stock valuations remain favorable, and the positive signals from corporate buybacks further highlight the market’s investment potential, likely drawing increased capital attention.

"Although the third quarter may continue to see high volatility, pressure factors are lower than anticipated, and a market rally may commence earlier than expected. Amid a new round of external tariff negotiations, China's relative advantage may increase. Factors including U.S. financial deregulation, continued interest rate cuts by the Federal Reserve, stablecoin expansion, and adjustments in U.S. Treasury duration all contribute to potential downward pressure on the U.S. Dollar Index. RMB appreciation would benefit Hong Kong stock performance. Domestically, strengthened anti-involution measures, easing pressures on internet and e-commerce sectors, and favorable real estate policy adjustments all represent positive developments," said Huatai Securities.

China Galaxy Securities sees a triple boost for Hong Kong stocks from policy, fundamentals, and capital flows. Policy-wise, emphasis on financial opening, continued expansion of mainland-Hong Kong connectivity and cross-border investment mechanisms, and support for Hong Kong listings all help energize the capital market and attract funds. Fundamentally, new consumer and tech sectors in Hong Kong show strong growth potential and remain undervalued. In terms of capital, increased trading volumes are reducing the liquidity discount; sustained southbound fund inflows are strengthening mainland investors’ pricing power in Hong Kong stocks.

"In terms of valuation, Hong Kong stocks still maintain a relative advantage over other international markets," said Yu Fenghui, an expert in modern finance. A series of financial opening policies—such as the Guangdong-Hong Kong-Macao Greater Bay Area initiative and cross-border wealth management schemes—are enhancing Hong Kong’s position as an international financial center. These policies are also deepening integration between mainland and Hong Kong capital markets, increasing the attractiveness and vitality of Hong Kong-listed equities