Some of the biggest Chinese firms listed in Hong Kong are busy buying back their own shares, seeking to shore up investor confidence in their cooling stock prices. Among them, Xiaomi Corp. has been repurchasing shares almost every single trading day in 2026. That's after the smartphone and electric car maker spent over HK$3.2 billion ($410 million) on buybacks last month, the most in more than two years. Tencent Holdings Ltd. and Kuaishou Technology have followed suit.
The trend has also spread beyond the technology sector to other parts of the market where stocks have been under pressure. Pop Mart International Group Ltd., whose shares have fallen in recent months on signs of weakening demand for its Labubu toys, conducted the toymaker's first share buyback since 2024, which sent its stock soaring on Tuesday. Geely Automobile Holdings Ltd. has also been active.
The latest wave of buybacks comes after blockbuster listings of artificial intelligence firms in both Hong Kong and Shanghai raised concerns over potential drainage of money from the secondary market. It also reflects regulatory efforts to enhance shareholder value, with authorities encouraging share buybacks and increased dividend payouts in recent years.
“The recent Hong Kong IPOs have attracted lots of liquidity in the market, which has posed some challenges for those bigger stocks to retain funds,” said Shen Meng, director at Beijing-based investment bank Chanson & Co. “The recent share pullback creates a good window for those companies to conduct share repurchases to boost investor confidence.”
Xiaomi's shares have fallen about 40% since a September high, while Tencent has slid 11% from an October peak. A gauge of Hong Kong-listed mainland companies has suffered a four-session losing streak through Tuesday as a broader rally in Chinese equities stalled.
Tencent spent around HK$13 billion last month on repurchasing its own shares — the most since January — and has been buying back on a near-daily basis in the new year. Kuaishou has also extended its repurchases after buying back HK$812 million in December, according to Bloomberg's calculations.
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