Tencent leads stock buybacks in China market update
- Asian equities experienced a broad rally, with Hong Kong outperforming while Japan closed lower due to the strength of the Yen.
- Year-to-date, 237 stocks in Hong Kong have engaged in buybacks, totaling HKD 201.2 billion, a significant increase from 2023.
- Tencent's stock repurchase activities highlight its leadership in the market, contributing to improved investor sentiment.
On September 17, 2024, Asian equity markets showed a positive trend, with Hong Kong leading the gains while Japan's market faced a downturn attributed to the strengthening Yen. This broad rally was supported by a significant initial public offering, the largest in Hong Kong since 2021, which bolstered investor confidence across various sectors. Notably, all sectors experienced growth, with financials and materials showing particularly strong performance. In a remarkable development, the Hong Kong Exchange reported that 237 stocks have engaged in buybacks year-to-date, a substantial increase from 92 in the previous year. The total buyback amount reached HKD 201.2 billion, equivalent to approximately $25.797 billion, marking a 172% rise year-over-year. This trend reflects a growing confidence among companies in their valuations and future prospects. Among the leading companies, Tencent stood out by purchasing 2,640,000 shares in Hong Kong, while Meituan and Alibaba also participated in buyback activities. Alibaba's buyback accounted for 17.5% of its American Depositary Receipts (ADRs) volume, indicating a strong commitment to enhancing shareholder value. The overall market sentiment was positively influenced by these buyback activities, as they signal a robust outlook from major corporations. The Hang Seng and Hang Seng Tech indexes both recorded gains, further illustrating the optimistic atmosphere in the Hong Kong market.