Chinese technology take to regain investor confidence

ANDthese programs emerged following strong scholarship falls caused by a wave of skepticism around the sector and enthusiasm with artificial intelligence companies (AI).

Companies such as Tencent, the largest Chinese quota and the 26th largest in the world, Alibaba, Xiaomi and Meituan recorded falls between 30% and 44% in the first semester, subsequently accelerating the pace of stock buybacks, a usual practice among listed companies to support the quotation when they consider that the market is undervaluing their securities.

In a compilation released by the Hong Kong newspaper SCMP, Tencent recompensed shares worth around $1,270 million (EUR 1,114 million) in June, the highest amount of 2026, while Alibaba spent 50 million (EUR 4,8 million) only last week.

Meituan said it had acquired almost $26 million (22.8 million) in shares between Monday and Tuesday, after the executive president acknowledged that the company's recent performance on the stock market fell short of expectations.

Xiaomi has spent some 153 million dollars (134 million euros) on this strategy since the middle of last month.

“ Taking into account the robustness of the net cash flow and the amounts still available in the repurchase programmes, we expect these companies to accelerate the pace of repurchases,” Citi Research recently wrote in a report.

Companies such as Alibaba and Meituan were involved in a price war in the home delivery market, a situation that even led to the intervention of the Chinese Government, while investors turned their attention to companies totally dedicated to AI, such as Minimax or Zhipu AI.

“ Traditional technology has a relatively low exposure to the AI business, which led to the transfer of capital from these shares to companies focused exclusively in this area,” said Kenny Ng, Everbright Securities analyst.

While experts consider that repo programs are only a temporary solution, they also said that they believe that large Chinese technology may be close to reaching a minimum scholarship, supported by the soundness of the main business, the ability to generate profit and cash flow consistently and the volatility of the AI sector, which has served as the main driver of the current market cycle.

In this context, Chinese technology not only intensified stock buybacks, but the main executives multiplied public presences to try to regain investor confidence.

The founder of Alibaba, Jack Ma, met with rice growers, while Xiaomi's founder, Lei Jun, was photographed eating at a small roadside stand in Wuhan, China.