More companies and conglomerates in Hong Kong and mainland China are hoarding cash on their balance sheets – following the approach of billionaire investor Warren Buffett’s investment vehicle – as returns from mature industries remain steady but modest amid a fragile global economic recovery. The trend has heightened investor focus on whether idle funds will be redeployed into new economy ventures, dividends or buy-backs.

Cash holdings among Hong Kong- and Shanghai-listed companies most representative of traditional industries – with core operations rooted in physical, tangible businesses – have risen from previous reporting periods. This stands in contrast to technology firms, which have been pouring money into artificial intelligence infrastructure build-up.

Per-share cash and equivalents at the 50 companies on the Shanghai Stock Exchange dividend index climbed 7 per cent year on year to 3,611.31 yuan (US$531) by the end of 2025, according to Bloomberg data. Cosco Shipping Holdings, Guanghui Energy and coal producer Yankuang Energy Group are its biggest constituents.

The 49 companies on the Hang Seng High Dividend Yield Index reported HK$897.23 (US$114) per share by the first quarter, up 6.2 per cent from the third quarter of last year, the data showed. Its members include Hang Lung Properties, CK Infrastructure and Power Assets Holdings.

“In today’s environment – with China’s recovery still uneven, confidence subdued and private-sector investment appetite weak – companies are finding fewer productive places to deploy capital,” said Charu Chanana, chief investment strategist at Saxo. “That makes buy-backs and dividends a more credible use of cash. The market is right to look at cash-rich China- and Hong Kong-listed companies as potential shareholder-return plays, especially where valuations are depressed and policy is pushing companies to lift dividends and buy-backs.”

In Hong Kong, CK Hutchison Holdings’ shares climbed to their highest level since 2020 after the conglomerate announced plans to exit the UK mobile market. Investors appear to be betting on another well-timed industry exit by the Li family, as concerns grow over the long-term outlook for traditional telecoms businesses.