Hang Seng Index Corporation: Hang Seng Biotechnology Index rebounds steadily from mid-June, with a noticeable increase in companies' buyback efforts.

The latest report from the Hang Seng Index Company indicates that the Hang Seng Biotechnology Index reached a high for the year on January 14, before entering a correction phase. Starting in May, the index showed a significant decline, believed to be mainly due to the diversion of funds from industries outside of the AI theme by the artificial intelligence boom, as well as increasing geopolitical tensions. The index stabilized in mid-June and then began to rebound, rising by over 17% from its low point in June. During this period, constituent companies increased their buyback efforts, providing some support to the market. As of July 3, 2026, the Biotechnology Index has narrowed its year-to-date decline to 2%, outperforming the Hang Seng Composite Index representing the overall Hong Kong stock market, which experienced a decline of 11% during the same period. At the same time, healthcare companies listed on the Hong Kong stock exchange significantly increased their share buyback activities during the market downturn. Over the past year, the overall monthly buyback amount by healthcare companies has remained stable, but with the intensification of selling in the market in May, buyback activities have noticeably accelerated. In June, healthcare companies' total buyback amount increased by 86% compared to the previous month, reaching 4.4 billion Hong Kong dollars, higher than the total amount for the previous five months. The Hang Seng Biotechnology Index, reflecting the overall performance of the top 30 biotechnology companies listed in Hong Kong and qualifying for the Stock Connect program, has also seen a clear increase in buyback activities in a challenging market environment. According to data from WIND, the total buyback amount of the constituent stocks of the Biotechnology Index surged by 1372% month-on-month in May and increased by 117% in June. The total buyback amount in June was approximately 3.6 billion Hong Kong dollars, accounting for 81% of the total buyback amount in the healthcare sector, reflecting the determination of index constituent stocks to maintain shareholder value.