Tencent Holdings is ramping up buybacks as its Hong Kong-listed shares struggle to recover from a selloff that has wiped out about $309 billion in market value since early October. The Shenzhen-based technology behemoth has been repurchasing shares almost every trading day since mid-May, with June spending poised to exceed HK$9 billion, the biggest monthly amount this year. The stock has lost more than a third of its value since the October high, pressured by concerns over monetizing heavy artificial intelligence investments and a shift in investor preference toward pure-play AI developers. Tencent plans to at least double AI investments to over 36 billion yuan in 2026 and is testing a new AI assistant for WeChat, which has over a billion users. The buybacks have helped ease the selloff, with the stock down 1.8% this month versus a 10% slump in the Hang Seng Tech Index, though a lower June close would mark a fifth straight monthly decline, the longest losing run since 2018. The stock's valuation hit a record low of 11.2 times one-year forward earnings, cheaper than utility CLP Holdings, while mainland Chinese investors are set to be net sellers for a third straight month. Citigroup expects buyback pace among Chinese internet firms to accelerate, with Meituan also planning repurchases after calling itself severely undervalued.
Tencent Holdings Ltd
Citigroup Inc.
CLP Holdings
Meituan
Alibaba Group Holding Ltd