On February 2, HSBC Holdings announced that the company would repurchase 2.1 million shares on the Hong Kong Stock Exchange on February 1, 2024, at a cost of HK $128 million. Based on the number and cost of this repurchase, the average repurchase price is approximately HK $61.12; According to the disclosure, the highest repurchase price for this transaction is 61.4 Hong Kong dollars, and the lowest repurchase price is 60.9 Hong Kong dollars.
Since the beginning of this year, the repurchase amount of Hong Kong stocks has exceeded HKD 25 billion.
According to Wind data, as of February 2nd, the cumulative repurchase amount of Hong Kong stocks has reached HKD 25.126 billion. Tencent Holdings, HSBC Holdings, Meituan W, AIA Insurance, and Xiaomi Group W have repurchase amounts exceeding HKD 1 billion. The repurchase amount of Tencent Holdings reached HKD 9.825 billion.
The repurchase amount of Hong Kong stocks has significantly increased compared to previous years this year. Last year, the repurchase amount of Hong Kong stocks was only HKD 8.16 billion. For the whole year of 2022, this figure was HKD 104.859 billion, while for the whole year of 2023, it was HKD 125.935 billion.
Interface News reporters noticed that the Hang Seng Index has shown an overall downward trend since January, with a cumulative decline of 8.8%. As of the close on February 2, it closed at 15533.56 points.
Independent stock critic Cen Zhiyong said that if the Hong Kong stock market falls again, there may be more repurchases, mainly because major shareholders feel that the company's valuation is too low, so they are absorbing stocks from the market.
A senior Hong Kong institutional insider said, "This move is mainly to protect the stock price, but the effect is effective."
From the top five companies in terms of repurchase amount, as of the close of February 2, Tencent Holdings, HSBC Holdings, Meituan W, AIA Insurance, and Xiaomi Group W have seen their stock prices fall by 4.84%, 2.62%, 22.77%, 12.2%, and 21.79% respectively this year.
"Recently, non-state-owned enterprises such as consumer goods, healthcare, and technology that experienced significant declines in the early stages have rebounded. However, it is difficult to determine whether the short-term uptrend is a rebound or reversal, especially in the face of low sentiment and oversold stock prices. It is not surprising that stock prices can rebound at any time. If macro conditions do not show signs of improvement, funds will eventually flock to energy, telecommunications, and utilities with higher certainty." Yan Zhaojun, a strategic analyst at Zhongtai International, told Interface News.
"Overall, there has been no upward trend in the Hong Kong stock market," said Cen Zhiyong.
Guotai Junan Huang Kaihong's research pointed out that at the beginning of the year, the Hong Kong stock market experienced a correction, with a significant decline in the information technology industry and a significant increase in expected returns, resulting in net inflows of domestic and foreign investment. Industries such as information technology are in a bottom consolidation stage. Looking ahead, the intensive introduction of policies to stabilize growth has enhanced the prospects for economic growth. Overseas, the US economic data shows resilience, inflation continues to ease, expectations of a "soft landing" rise, and Hong Kong stock liquidity will slightly improve.
Huang Kaihong pointed out that the Hong Kong stock market is more likely to show an upward trend of bottom volatility. It is recommended to pay attention to dividend assets with low risk characteristics in Hong Kong stocks, such as telecommunications operators, energy, and utilities.
Shen Fanchao from Zhejiang International believes that he continues to maintain a cautious attitude towards the short-term trend of the Hong Kong stock market, but the cost-effectiveness of the left side allocation in the medium to long term is further enhanced. Continue to emphasize maintaining a dispersed and balanced allocation of industry sectors. In a weak market environment, focus on the stable performance, stock price, and dividend distribution sectors of state-owned enterprises, such as energy, banking, telecommunications, and public utilities.
He suggested retaining a portion of the layout for pro cyclical, policy positive, and prosperous industries, including consumer, securities, and TMT industries that benefit from policy positive factors; Pharmaceuticals and the Internet that are sensitive to financial resources; Gold, electronics, pharmaceuticals, etc. with high prosperity or significant expected improvement.