China & Hong Kong Dividend Yields, Stock Repurchases Soar To Historic Highs As Markets Remain Depressed
Portfolio Pulse from Daniel Harrison
Hong Kong-listed and Chinese companies are increasing stock buybacks and dividend payouts as their domestic markets remain depressed. This trend is expected to continue throughout the year. In 2022, Hong Kong stock buybacks amounted to $13.4 billion. The Hang Seng Index forecasts that the buyback trend will continue to over $90 billion of stock buybacks by year-end. Record dividend payouts by China’s biggest firms, including Bank of China Ltd. and PetroChina Co Ltd., have reached $206 billion so far this year. Among the Hong Kong companies buying back their shares are Yum China, Tencent, HSBC Holdings Plc., Hanison Construction Holdings Ltd., Bank of East Asia Limited, Cosco Shipping Development Co Ltd, Li Ning Co. Ltd. and Dongfeng Motor Co. Ltd.
September 20, 2023 | 3:45 pm
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POSITIVE IMPACT
Bank of China Ltd. is among the Chinese firms with record dividend payouts this year, yielding over 6% in dividend returns.
The high dividend yield could attract investors, potentially driving up the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Bank of East Asia Limited is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
BYD Co Ltd repurchased over $200 million of its own stock off mainland Chinese exchanges in April 2022.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Cosco Shipping Development Co Ltd is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Dongfeng Motor Co. Ltd. is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Hanison Construction Holdings Ltd. is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
HSBC Holdings Plc. is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Li Ning Co. Ltd. is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
PetroChina Co Ltd. is among the Chinese firms with record dividend payouts this year, yielding over 6% in dividend returns.
The high dividend yield could attract investors, potentially driving up the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Tencent is currently repurchasing over $50 million of its own stock a day.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Xiaomi Corp. announced in August 2022 that it intended to repurchase up to $1.3 billion of its own shares in Hong Kong. This stock repurchase appears to be still ongoing.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Yum China is among the Hong Kong companies buying back their shares in 2023.
Stock buybacks reduce the number of shares outstanding, which could increase earnings per share and potentially drive up the stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80