Large-scale buyback! A-shares and Hong Kong stock companies are taking intensive actions!

Recently, the stock buybacks of listed companies in the Hong Kong stock market have noticeably increased, and the A-share market has also become increasingly active in share repurchases.

Experts generally hold a positive view on the phenomenon of listed companies actively conducting share buybacks, believing it to be beneficial for market stability and favorable for returning value to investors, which is a direction worth encouraging.

The Rise in Hong Kong Stock Buybacks Exhibits Two Major Characteristics

After disclosing their financial reports, companies like Pop Mart and Kuaishou quickly initiated share buybacks, reflecting a trend of increasing buyback activity among listed companies in the Hong Kong stock market. Reporters have found that since this week, both the number of buybacks and the amount repurchased in the Hong Kong stock market have significantly increased compared to previous weeks.

According to Wind statistics, as of the time of writing, the number of listed companies conducting share buybacks in the Hong Kong stock market has reached 50 this week, whereas in the three consecutive weeks prior, the weekly number of buybacks did not exceed 30; in terms of the number of shares repurchased, the total number of shares repurchased in the Hong Kong stock market has exceeded 150 million this week, while in the previous six weeks, the weekly total number of shares repurchased was below 100 million; in terms of the scale of buyback amounts, the total buyback amount in the Hong Kong stock market has exceeded 4 billion Hong Kong dollars this week, which is several times the weekly buyback amounts of previous weeks.

The Securities Times reporter has found that this round of large-scale share buybacks in the Hong Kong stock market exhibits at least two characteristics.

First, multiple companies experienced significant stock price adjustments after disclosing their financial reports, and the related companies engaged in substantial buybacks during these price declines. For instance, Pop Mart disclosed its financial report on March 25, with its stock price plummeting by 22.51% that day and further dropping by 10.46% on March 26. Pop Mart quickly began its share buyback on March 26, repurchasing 3.94 million shares that day for nearly 600 million Hong Kong dollars, setting a record for the highest single-day buyback amount in the company’s history. Kuaishou’s situation is somewhat similar; after disclosing its financial report, its stock price fell by 14.04% on March 26, and the company repurchased 6.52 million shares on March 26, marking a new high for single-day buybacks in the past year. After China Hongqiao disclosed its annual performance on the evening of March 20, its stock price dropped by 8.12% on March 23, and the company began continuous buybacks on March 23, with buyback amounts at a relatively high level in recent years.

Second, many Hong Kong companies implementing share buybacks generally achieved growth in performance. For example, Pop Mart achieved revenue of 37.12 billion yuan in 2025, a year-on-year increase of 184.7%, with adjusted net profit of 13.08 billion yuan, a year-on-year increase of 284.5%; Kuaishou’s total revenue for 2025 increased by 12.5% year-on-year to 142.8 billion yuan, with adjusted net profit of 20.6 billion yuan, a year-on-year increase of 16.5%; China Hongqiao’s revenue increased by about 4.0% year-on-year in 2025, with net profit attributable to shareholders increasing by about 1.2% year-on-year.

A-share Listed Companies’ Share Buybacks Also Become Increasingly Active

Notably, while buybacks are warming up in the Hong Kong stock market, the A-share market, as another type of Chinese equity asset, is also becoming increasingly active in buyback activities. Many A-share listed companies are actively launching share repurchase plans or are actively implementing share buyback plans. Data shows that since this week, the number of companies in the A-share market launching buyback proposals has significantly increased compared to previous weeks.

Some A-share listed companies have even swiftly executed their first buyback after announcing their buyback plans.

For example, on the evening of March 26, Haier Smart Home disclosed a plan to repurchase A-share shares, with a total buyback amount not exceeding 6 billion yuan (inclusive) and not less than 3 billion yuan (inclusive), with an upper limit on the buyback price of 35 yuan/share. On March 27, Haier Smart Home quickly conducted its first buyback, repurchasing 7.65 million A-shares through centralized bidding, accounting for 0.082% of the company’s total share capital, with a maximum buyback price of 22.40 yuan/share and a minimum buyback price of 21.55 yuan/share, totaling approximately 168 million yuan (excluding transaction fees).

Experts Generally View Share Buybacks Positively

Experts broadly hold a positive view on the phenomenon of listed companies actively conducting share buybacks.

Yang Delong, chief economist at Qianhai Kaiyuan Fund, believes that since the introduction of the new “Nine National Regulations,” various measures have been continuously implemented in China to improve the overall quality of listed companies. At the listing end, stringent entry barriers are enforced to firmly block companies that do not meet listing conditions from entering, thereby improving the quality of listed companies from the source; for already listed companies, strict supervision is applied, encouraging them to return value to investors through cash dividends or buybacks, allowing more investors to be willing to become shareholders, which not only increases returns for investors but also reflects the social responsibility of listed companies.

Senior market participant Gui Haoming pointed out in an interview with Securities Times reporters that the share buyback behavior of listed companies is generally considered a way for companies to maintain their stock prices, demonstrating the company’s confidence in itself and the market. There is also a theory that it serves as a form of “distribution” to shareholders to some extent. He believes that when listed companies can engage in large-scale buybacks, it usually benefits the recovery of the company’s stock price. In recent years, China has also advocated for listed companies to repurchase shares based on their actual circumstances, contributing to market stability and receiving much support and welcome from many listed companies.

However, Gui Haoming also pointed out the differences in the impacts of buybacks of different scales. He believes that some companies conduct significant buybacks with large scales, while some companies have relatively smaller buyback amounts. He asserts that for a listed company to conduct a buyback, a small buyback may not truly solve the issue, and is more of a gesture, whereas a large buyback often indicates a clearer intention; from the perspective of the management team of listed companies, Gui Haoming believes that share buybacks may signal that the management team considers the company’s stock price to be undervalued.

Overall, Gui Haoming believes that the competition among listed companies to repurchase shares is beneficial for market stability and returning value to investors, which is worthy of encouragement.

(Source: Securities Times)