Hong Kong Shares Rally on Hopes of More Buybacks; Haidilao Shares Surge 14%

Hong Kong shares rallied for a third straight session on Tuesday on expectations that current valuations would nudge companies to follow through with buybacks, to boost stakeholder confidence.

Sentiments also drew support from regulator SFC’s suggestion that the investment threshold for mainland traders be reduced to 100,000 yuan from 500,000 yuan, to boost the market’s turnover.

The Hang Seng Index darted 3.05%, or 505.93 points, to finish the day's trade at a 2024 high of 17,093.50. The Hang Seng China Enterprises Index (HSCEI) advanced 3.49%, or 200.63, to 5,949.52, also reaching its highest level this year.

On average over the past five years, 121 firms have repurchased 8 billion yuan in stock in a single month, while in February alone, 669 firms have executed or are implementing buybacks worth 55 billion yuan, according to Allianz Global Investors.

In corporate news, restaurant operator Haidilao International Holding 6862 surged nearly 14%, days after the company revealed that it is launching a franchise model to support its expansion.

Meanwhile, Xiaomi 1810 jumped 11% after the smartphone maker said deliveries of its introductory electric car – the SU7 – will commence later this month.