The first half of 2025 has been monumental, with opportunities and risks coexisting in the global investment market — DeepSeek emerging, Trump's tariff policies, and conflicts in the Middle East... mooers are both participants in the Capital Markets and witnesses to a great era.
Looking back, consolidating experience, feel free to subscribe to the special topic.2025 Exclusive Mid-Year Review, may all our efforts in the first half of the year lay the groundwork for surprises in the second half.
Duan Yongping once said, "There is only one true buyer of any stock, which is the company itself." This viewpoint directly points to buybacks: when a company uses its own funds to repurchase shares, it serves as the most direct endorsement of value. For investors, the buyback action also encompasses dual signals: it reflects the management's judgment that the current stock price is below intrinsic value, and it directly enhances shareholder return efficiency by reducing the number of shares outstanding. Moreover, from past experience, buybacks often serve to support stock prices, bringing potential returns to investors.
In the first half of 2025, the share buyback boom in the Hong Kong stock market is particularly striking. According to Statistics, a total of 233 companies carried out buybacks, with a cumulative amount reaching 165.4 billion Hong Kong dollars, an increase of 30.85% compared to 126.4 billion Hong Kong dollars during the same period last year. Which companies have been the most "generous" in this wave of buybacks?
Futu News specifically sorted out the "top 10 companies by repurchase amount in Hong Kong stocks for the first half of 2025" for the reference of mooers.
From the perspective of industry distribution, Internet and financial leaders remain the main force in buybacks. Data shows that the top three companies by repurchase amount contributed over 40% of the total buyback amount in Hong Kong stocks, and the top ten enterprises accounted for more than 50%, demonstrating a significant leader effect.
$TENCENT (00700.HK)$ With a total repurchase amount of 36.54 billion HKD, it tops the list and deserves the title of "King of Buybacks."
This figure is approaching its total repurchase scale of 49.4 billion HKD for the entire year of 2023. If this pace continues, its total repurchase scale for 2025 is expected to exceed 80 billion HKD, continuing the growth trend since 2021 (with repurchase amounts of 2.6 billion, 33.8 billion, 49.4 billion, and 112 billion HKD for the years 2021-2024).
It is worth noting that since the repurchase was restarted on May 19, TENCENT has operated continuously for 32 days, spending a total of 16.014 billion HKD. In addition, northbound funds have also continuously flowed into TENCENT this year, totaling 15.9 billion HKD, with both creating support on the funding side.
$HSBC HOLDINGS (00005.HK)$ with $AIA (01299.HK)$ Following closely, with repurchase amounts of 18.7 billion HKD and 14.99 billion HKD, they rank second and third respectively.$COSCO SHIP HOLD (01919.HK)$ 、 $CHINAHONGQIAO (01378.HK)$ 、 $KUAISHOU-W (01024.HK)$ 、 $SWIRE PACIFIC A (00019.HK)$ 、 $CHOW TAI FOOK (01929.HK)$ 、 $TIMES ELECTRIC (03898.HK)$ 、 $WUXI BIO (02269.HK)$ And companies like these also made it into the top ten.
From the stock price performance perspective, most companies with higher repurchase amounts this year have seen good gains: $CHOW TAI FOOK (01929.HK)$ In the first half of the year, a gain of over 99%, $CHINAHONGQIAO (01378.HK)$ a gain of over 67%, $KUAISHOU-W (01024.HK)$ Increased over 53%, $WUXI BIO (02269.HK)$ Increased over 46%; only $SWIRE PACIFIC A (00019.HK)$ 、 $TIMES ELECTRIC (03898.HK)$ Slight decline in the first half.
How will the Hong Kong stock market perform in the second half of the year?
Historical Data shows that since 2005, the Hong Kong stock market has experienced five rounds of repurchase waves, which occurred in 2008, 2011, 2016, 2018-2019, and 2021-2023. Reviewing these five repurchase waves, they all happened when the Hang Seng Index was at the bottom range. Analysts from BOCOM INTL indicated that the current valuation of leading Internet stocks in the Hong Kong market is not considered high. The scarcity of these assets is more related to the current Industry cycle, and with high profit growth and improvements in the financial situation catalyzing it, the relatively undervalued leading Internet stocks in Hong Kong are expected to continue rising.
BOCOM INTL believes that the Hong Kong stock market has shown a continuous recovery trend since being impacted by "equal tariffs," steadily rebounding from the low point, and has fully regained the ground lost due to the "equal tariffs" impact. An analysis of the driving factors indicates that the recovery of the Hong Kong stock market is primarily attributed to a significant decline in risk premiums, while the risk-free interest rate and corporate profit expectations have remained relatively stable. Meanwhile, continued net inflow of southbound funds has also provided strong support for the Hong Kong stock market.
Is investing always stepping on a landmine?Futubull AI is now online!Accurate answers, comprehensive insights, seize key opportunities!
Editor/joryn