Hong Kong-listed companies actively conduct buybacks, annual repurchase amount exceeds 20 billion Hong Kong dollars

Financial Times Reporter Hu Huaxiong

Recently, during the adjustment of the Hong Kong stock market, some listed companies have shown a “buy more as prices fall” characteristic in their share repurchase activities.

Despite the ups and downs and significant volatility in the Hong Kong stock market this year, listed companies have maintained a high level of enthusiasm for share buybacks. Wind data shows that since 2026, the total repurchase amount in the Hong Kong stock market has exceeded HKD 20 billion, involving over 130 listed companies.

Looking at the repurchase amount per company, the trend still features industry leaders at the forefront, including Tencent Holdings, Xiaomi Group, Zhongtong Express, Geely Auto, and Sunny Optical Technology, each having repurchased over HKD 1 billion this year. Among them, Tencent Holdings leads significantly, with a total repurchase amount exceeding HKD 6 billion; Xiaomi Group has repurchased over HKD 4 billion this year.

In terms of the number of shares repurchased, more than 20 companies, including Xiaomi Group, Geely Auto, Shoucheng Holdings, Yidu Technology, Jieli Trading Treasure, and Jiumiao Jiumiao, have repurchased over 10 million shares this year.

Recently, influenced by changes in global liquidity and tensions in the Middle East, the Hong Kong stock market has experienced some adjustments. However, many companies continue to buy back shares consistently, even showing a “buy more as prices fall” pattern. Industry experts generally believe that such buyback activities under these circumstances usually signal that the companies are optimistic about their long-term development.

For example, on March 4, Geely Auto’s stock price further declined, briefly falling below HKD 15 during trading, hitting a multi-month low. However, on the same day, Geely Auto increased its buyback efforts, repurchasing 7.378 million shares, with a total amount of HKD 110 million, significantly higher than previous buyback days.

NetEase Cloud Music, after more than a year, started a new round of share repurchases from February 12 this year, with a buyback amount of about HKD 15 million on that day. Market data shows that on February 12, NetEase Cloud Music’s stock price closed nearly 10% lower, falling below HKD 160 during the day, down more than 40% from its peak in July 2025. Despite this, the company has maintained a continuous buyback pattern, with daily repurchase amounts around HKD 15 million.

During periods of low stock prices, Xiaomi Group has also conducted continuous share buybacks at a scale of about HKD 100 million per day. Market data indicates that Xiaomi’s stock price recently fell as low as HKD 31.2, nearly halving from its peak in 2025.

Zheshang International’s research suggests that large-scale buyback waves in the market often occur in bear markets, typically indicating that listed companies believe their current stock prices are far below intrinsic value. This sends a positive signal to investors that current stock prices are seriously undervalued, aiming to stabilize investor confidence and the company’s stock price.

The institution points out that market buyback data has certain guiding significance for future market trends. Since 2008, the Hong Kong stock market has experienced five waves of corporate buybacks, followed by a wave of market rallies.