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The current buyback rules of the Hong Kong Stock Exchange are probably the best among the exchanges we are familiar with:
1. The repurchased shares must be cancelled (that is, the real repurchase, while A shares can be used for equity incentives or employee stock ownership plans, for market value management, and even sold after 12 months and 36 months...... However, the future may change, and there are people with bad intentions who ask the Hong Kong Stock Exchange to revise the rules to be consistent with A-shares, but the conscience is greatly bad......
2. After the repurchase of shares, it must be announced after the close of the day (A shares only need to be announced monthly, and US stocks only need to be announced in the quarterly report, of course, the company can voluntarily make more announcements), and even, if a company is listed in multiple places and Hong Kong stocks are the first listing place, the company's repurchase in other stock markets must also be announced, screenshots are two examples:
However, it is a pity that if the Hong Kong stock is a secondary listing place (the stock abbreviation has a suffix of "-S"), there is no need to announce it every day, and it only needs to follow the repurchase announcement rules of the primary listing place. Alibaba, which we are familiar with, has a large amount of repurchases, but it is only a voluntary quarterly announcement according to the rules of the US stocks, and we have no way of knowing whether it buys back every day and how much.
3. If the listed company has set up an automatic repurchase plan, it can apply for exemption, and the quiet period of the performance can also be repurchased. We note that AIA, HSBC Holdings, Kuaishou, etc., have waived the moratorium on repurchases during the quiet period in accordance with this rule, so they can repurchase every day, and they are all repurchasing before the issuance of annual reports. However, it is a pity that although Tencent has recently repurchased a fixed amount of HK$1 billion every day, it stands to reason that it can set up an automatic repurchase plan and repurchase before the issuance of annual reports, interim reports, and quarterly reports, so as to avoid unnecessary fluctuations.
4. The top 20 listed companies in terms of repurchase amount since the beginning of this year:
5. The repurchase progress of several large companies (Tencent, HSBC, AIA, Meituan) this year:
6. Emphasize: As I have said repeatedly, when the stock market is weak, the last buyer of each company is the company itself, and if the stock price falls so deeply that even the last buyer of the company does not buy its own stock, then investors should think about it.
7. Incidentally, the growth of China's major Internet companies may have slowed down, but profits and cash flow are still stable. If they understand their situation and shrink to start new businesses, the number of employees can be significantly reduced (after all, maintaining old products and old businesses requires far less manpower than developing new products and expanding new businesses), and the money saved can be turned into profits. For example, I recently saw the news that Byte's Feishu is laying off employees, and it is said that there were more than 10,000 people in this business department before, which is really incredible, but if Feishu slows down the development of new business and new customers, and focuses on maintaining software and old customers, it seems that the number of employees can be halved. In addition, I have also observed that in the past, some third-tier cities had bike-sharing, but since last year, bike-sharing has disappeared in some third-tier cities, which has actually saved these bike-sharing operators a lot of money. There are more and more things like this, then the Internet giants can use more and more money for repurchases, it depends on whether they are willing to give back to investors, at present, it seems that it is okay, Tencent recently repurchases 1 billion Hong Kong dollars a day, Meituan 400 million Hong Kong dollars, Ali and JD.com also have a large repurchase plan, but their Hong Kong stocks are secondary listings, so we don't know if they have daily repurchases, we can only wait for quarterly announcements.
8. Final statement: Buying back shares does not mean that the stock can rise. But buybacks do provide liquidity for the trading of the stock and give investors some reference
Author: Tang Shiyu
Link: https://xueqiu.com/5519392453/285526189
Source: Snowball
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