Zheng Quan Shi Bao·2025-12-11 06:07Core Viewpoint - The Hong Kong stock market has entered a new wave of share buybacks since November, led by major technology companies, which is seen as a positive signal for long-term development and financial optimization [1][5]. Group 1: Buyback Activity - In November, the total number of shares repurchased by Hong Kong listed companies exceeded 700 million, a significant increase compared to previous months where the numbers were 260 million, 530 million, and 530 million respectively from August to October [2]. - Major companies like Tencent Holdings and Xiaomi Group have resumed their buyback activities, with Tencent repurchasing over 1 million shares daily and spending more than 630 million HKD each day, which is higher than the previous buyback period [2][3]. - Xiaomi Group has repurchased shares worth over 2.9 billion HKD since November, accounting for more than half of its total buyback amount since 2025, indicating a notable increase in buyback intensity [2]. Group 2: Leadership of Technology Companies - The current buyback wave is primarily led by technology companies, with Tencent and Xiaomi dominating the buyback amounts [3]. - Other tech companies like Kuaishou and Kingsoft are also starting to appear on the buyback leaderboard, while non-tech companies like HSBC and China Hongqiao have seen a decline in buyback activity [3]. Group 3: Timing and Strategy of Buybacks - Experts suggest that companies typically choose to buy back shares when they believe their stock is undervalued, avoiding periods like earnings silence to mitigate risks [4]. - The buyback strategy is influenced by regulatory constraints, financial strength, and market sentiment, with larger companies having more capacity for significant buybacks compared to smaller firms [4]. Group 4: Long-term Development Signals - Share buybacks are viewed as a demonstration of a company's confidence in its performance and are common in mature capital markets [5]. - Buybacks can optimize equity and financial structure, enhance earnings per share, and stabilize control against hostile takeovers [5][6]. - Continuous buyback actions signal to the market that a company's value is underestimated and its cash flow is stable, which can attract institutional investors and improve the overall investment environment [6].