Despite the Hang Seng Index's strong rebound in 2025, the underlying economics of Hong Kong's market tell a very different story. Drawing on a decade of data from more than 2,000 HKEX-listed companies, this report applies the Return on Invested Capital (ROIC) framework to examine how capital allocation – not revenue growth alone – determines long-term value creation. It uncovers why the market is increasingly rewarding disciplined capital allocators, and what boards and management can do to improve returns going ahead.
*The banner image of this webpage is generated by AI.
