Zheng Quan Ri Bao·2025-07-10 16:07Core Viewpoint - The Hong Kong stock market is experiencing a significant increase in share buybacks, indicating that companies are recognizing their undervalued stock prices and are actively working to optimize their capital structures [1][2][3]. Group 1: Buyback Trends - As of July 10, 2023, 206 Hong Kong-listed companies have initiated buyback plans, involving a total amount of 100.7 billion HKD, surpassing both the previous year and the total for 2023 [1][2]. - Major companies like Tencent Holdings, HSBC, and AIA have led the buyback trend, with their combined buyback amounts exceeding 75% of the total market buybacks [4]. - The buyback activity is not limited to traditional sectors but has expanded to include consumer and healthcare industries, reflecting a broader market confidence [4][5]. Group 2: Market Sentiment and Economic Factors - The current buyback wave is seen as a response to low valuations, with companies signaling their belief in their intrinsic value and the potential for market recovery [2][3]. - The supportive policy environment, including new regulations from the Hong Kong Stock Exchange, has provided companies with greater flexibility for capital operations [2][3]. - The trend indicates a shift in corporate governance, with companies increasingly focusing on shareholder returns and capital efficiency, especially in a low-growth environment [3][5]. Group 3: Future Outlook - Analysts expect the buyback trend to continue, supported by strong financial capabilities and the ongoing valuation mismatch in sectors like technology and finance [5]. - The buybacks are anticipated to boost market sentiment, stabilize stock prices, and enhance the attractiveness of blue-chip stocks in the long term [5][6]. - The dual drivers of buybacks and supportive policies are creating opportunities for investors, although caution is advised regarding external market conditions [6].