Hong Kong stocks see another wave of buybacks, with leading technology companies leading the way in valuation recovery.

According to Wind Information statistics, in November this year, the total number of shares repurchased by listed companies in the Hong Kong stock market exceeded 700 million shares. From August to October, the monthly repurchase of shares in the Hong Kong stock market was 260 million shares, 530 million shares, and 530 million shares respectively. In December, the active trend of share repurchases in the Hong Kong stock market continued, with the cumulative repurchase of shares exceeding 300 million shares in just the first few trading days of December. It is worth noting that in this round of share repurchase frenzy in the Hong Kong stock market, leading technology companies have played a stronger leading role. Since November this year, the top two companies in terms of repurchase amount in the Hong Kong stock market are Tencent Holdings and Xiaomi Group. In addition, tech companies such as Kuaishou and Kingsoft Software have also repurchased a significant amount recently. Chen Li, Assistant President of Chuancai Securities, Chief Economist, and Director of the Institute, stated that the core reason for the new round of share repurchases in the Hong Kong stock market is the current misalignment between stock prices and intrinsic value, and companies are using repurchases to directly communicate a signal of valuation repair to stabilize confidence. At the same time, the Hong Kong Stock Exchange will implement the stock inventory mechanism reform in 2024, breaking through the restriction of "repurchase equals cancellation", allowing shares to be retained and reused, significantly increasing the enthusiasm for company repurchases. In addition, leading companies have ample cash flow, and in the absence of high-return new investment targets, repurchases have become a priority choice to optimize fund allocation and increase shareholder returns.