Hong Kong-Listed Companies Repurchase Over HK$120 Billion in Shares This Year, Dividend and Innovative Drug Sectors Seen as Allocation Opportunities

Hong Kong stocks have continued to fluctuate and adjust recently, but Hong Kong-listed companies' enthusiasm for share buybacks remains undiminished. Wind data shows that as of October 27, when this report was filed, 358 Hong Kong-listed companies had repurchased 10.168 billion shares so far this year, with a total repurchase amount of HK$125.782 billion. Tencent Holdings, AIA Group, and Xiaomi Corporation-W were among the companies with the largest buyback sizes. On the outlook for the Hong Kong market, industry insiders believe Hong Kong stocks may remain range-bound in the short term, and directions backed by verified profitability and cash flow may be relatively more resilient. In terms of specific allocation, dividend assets represented by operating assets such as railways, highways, and ports, as well as innovative drugs and the CXO sector, have drawn attention. In the technology sector, the market is more concerned with whether the return on AI capital expenditure in a high-interest-rate environment can cover financing costs. (China Securities Journal)