Introduction

Bank of America analysts have identified Asian stocks with high buybacks as a potential opportunity for investors. Buybacks occur when companies repurchase their own shares from investors, and Bank of America has been tracking buybacks in Asian stocks for over three decades.

The Power of Buybacks

The analysts at Bank of America observed that Asia stocks with high share buybacks tend to outperform other stocks. They mentioned that the proportion of Asian stocks buying back shares is currently at a 20-year high, indicating increased potential for investors.

Chinese Stocks

Bank of America’s list of the “Top thirty stocks with the highest proportion of Buy-Backs as a percent of market cap” includes well-known Chinese companies such as Alibaba, Haier Smart Home, Great Wall Motor, Daqo New Energy, and Huaneng Power.

South Korea, Australia, and Beyond

In South Korea, Bank of America highlighted grocery companies CJ Cheil and E-Mart. In Taiwan, the list includes Innolux, a leading liquid crystal display company, and Catcher Tech, a prominent computer components manufacturer. Australian stocks on the list include major banks like Westpac and National Australia Bank, as well as retailer Woolworths and pallet manufacturer Brambles. The analysts also noted that Asia stocks with revenue exposure to the US, such as Singaporean industrials company Keppel Corp and Hong Kong real estate firms HK Land and Swire Pacific, have benefited from the resilience of the US economy.