China's largest public company by market capitalization spent the equivalent of about $193.3 million to buy back 4.05 million shares on Wednesday, a filing to the Hong Kong bourse showed. That came after it repurchased 3.93 million shares Tuesday, stepping up a long running program.Tencent started repurchasing shares more aggressively last year, with its spending on buybacks more than doubling from 2023 to roughly $14.4 billion, according to data from financial platform Wind Information.In 2024, Tencent spent more money than any other Hong Kong-listed company on share buybacks, more than double that of HSBC Holdings, which ranked second, Wind data showed.The two-day outlay to repurchase shares came after Tencent's stock suffered its second-biggest loss in a year on Tuesday, following the addition of the company to a list of Chinese companies that the U.S. Defense Department identifies as military in nature, a reflection of the Pentagon's assessment that China fuses commercial and military technology. Tencent called the decision a "mistake," and said it would seek removal from the list.The stock fell 2.7% in Hong Kong trading on Wednesday. Deutsche Bank analyst Leo Chiang said in a research note that while Tencent's share price could be volatile in the short term, "strong share-repurchasing" should support the company's shares.<img src="https://cdn.magzter.com/1731070667/1736406322/articles/h06Mu8mU6EuWtgWLsrsys/sU0imBtzO1736409372425.jpg" alt="image">Goldman Sachs analysts concurred, writing in a note that the buyback "could be a way to help offset capital outflow impact." They added that more broadly speaking, the updated Pentagon list, alongside uncertain tariff risks and potentially muted policy actions in China until a national congress in March, all "point to a volatile trading backdrop for Chinese stocks in the weeks ahead." Tencent's stock, hit by factors ranging from weaker consumption in China to a techsector crackdown by Beijing, has fallen around 50% from a peak in early 2021.The videogame company and WeChat owner said last May that its buybacks reflect a commitment to returning excess capital to shareholders. Analysts have previously said the repurchases also aim to alleviate ongoing selling pressure from major shareholder Prosus, which has been paring down its stake in Tencent in an effort to fund its own share repurchase program.

Tencent Accelerates Buyback as Stock Falls

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