Year-to-date Hong Kong share buybacks surpass HK$140 billion, with technology and financials leading activity

Buyback activity among Hong Kong–listed companies has intensified throughout the year. Wind Information reports that from January 1 to November 16, 243 issuers collectively repurchased 6.47 billion shares, with aggregate consideration reaching HK$147.755 billion. By sector, sizeable repurchases have been concentrated in high technology, financials, and consumer businesses.

According to Liu Xiangdong, Chief Analyst at Dongyuan Investment, consistent escalation in buybacks reflects both supportive policy and improving market sentiment, drawing more companies into the market. The sector mix has broadened from internet and financials to include consumer and pharmaceutical names, signaling a gradual restoration of confidence.

On a company basis between January 1 and November 16, 58 firms repurchased over HK$100 million, 33 exceeded HK$200 million, 20 surpassed HK$500 million, 14 went beyond HK$1 billion, and 6 topped HK$2 billion. Tencent Holdings led with HK$60.965 billion; HSBC Holdings and AIA ranked second and third at HK$30.257 billion and HK$17.693 billion. China Hongqiao and COSCO Shipping Holdings placed fourth and fifth with HK$5.582 billion and HK$3.116 billion. Additional issuers with buybacks exceeding HK$1.5 billion include Kuaishou‑W, WuXi Biologics, Anta Sports, Swire Pacific A, Chow Tai Fook, and Xiaomi Group‑W（01810.HK）.

Internet leaders and financial heavyweights have emerged as the primary drivers. Tencent Holdings, dubbed the “buyback king,” has repurchased 122.143 million shares this year for HK$60.965 billion, accounting for 41.26% of total Hong Kong buybacks. Kuaishou‑W committed HK$2.172 billion to repurchase 42.25 million shares; Xiaomi Group‑W（01810.HK）spent HK$1.537 billion to buy back 34.13 million shares; Bilibili and Meituan have also initiated programs worth several hundred million Hong Kong dollars. Among financials, HSBC, AIA, and Hang Seng Bank repurchased HK$30.257 billion, HK$17.693 billion, and HK$1.076 billion respectively.

Consumer names have notably stepped up activity. Anta Sports has repurchased HK$1.685 billion, totaling 19.6642 million shares; Chow Tai Fook has bought HK$1.573 billion, totaling 122.7922 million shares; Yum China has executed HK$1.211 billion in buybacks, totaling 3.4129 million shares; China Mengniu Dairy has repurchased HK$533 million, totaling 33.868 million shares; and China Feihe has completed HK$504 million, totaling 117.354 million shares.

Liu Gang, Chief Overseas Strategy Analyst at CICC Research, highlighted the Hong Kong Stock Exchange’s June 2024 treasury stock reform, which permits issuers to retain repurchased shares as treasury stock rather than mandatorily canceling them—an adjustment that has lifted both enthusiasm and efficiency for buybacks. He expects second‑half repurchase totals to be broadly in line with the first half, around HK$100 billion.

Corporate repurchases are a significant source of incremental capital for the Hong Kong market, with tangible cash commitments materially bolstering investor confidence. Thus far this year, the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Tech Index have risen 32.47%, 28.92%, and 30.10%, respectively, outperforming major global equity markets.

Looking ahead, Zhang Xia, Chief Strategy Analyst at China Merchants Securities, noted that relative to major global benchmarks, Hong Kong valuations—especially for the Hang Seng Tech Index—remain at historically low levels, with current price‑earnings ratios below long‑term averages, leaving scope for valuation recovery. From a sector standpoint, he sees near‑term focus on dividends and non‑ferrous metals, with selective positioning on dips in internet technology.

Yang Chao, Chief Analyst at China Galaxy Securities, added that following the U.S. Federal Reserve’s October rate cut, profit‑taking pressures have increased, and Hong Kong equities may continue to trade sideways. He pointed to potential catch‑up gains in sectors with third‑quarter results beating expectations; rising attention to dividend assets amid style rotation; and policy‑favored technology and consumer sectors, as referenced in the “15th Five‑Year Plan” recommendations, likely drawing capital.