A-share market buyback activity has intensified noticeably since the second half of 2026. Data from East Money Choice shows that between July 1 and September 6, 823 listed companies released buyback-related announcements.
During this recent wave of concentrated buybacks, leading enterprises have taken the forefront with substantial repurchase programs, while the purposes behind these buybacks continue to diversify. Additionally, alongside frequent large-scale repurchases, the number of cancellation-style buybacks has surged rapidly, emerging as a key tool for listed companies engaged in market value management and shareholder returns.
Buyback purposes continue to diversify
When examining the roster of companies that have already executed buybacks, leading enterprises clearly dominate. Hu Qimu, a professor at the Maritime Silk Road Research Institute of Huaqiao University, told reporters that large-scale corporate buybacks not only demonstrate management's conviction in their own operations and future trajectory but also transmit a positive signal to the market. Companies with solid cash flows and strong profitability use buybacks to stabilize their share prices, which helps reinforce investor confidence and enhance the investment appeal of the firm.
Looking at the stated rationales, the purposes behind listed companies' share repurchases are becoming increasingly varied. According to the data, among the 823 companies that issued buyback announcements, 273 cited "using shares for employee stock ownership plans or equity incentives" as their primary purpose, representing the largest share. Furthermore, 73 companies specified "safeguarding corporate value and protecting shareholder interests" as their objective. Wu Wanying, a senior researcher at Tiantuo Digital Economy Think Tank, noted that share buybacks represent one of the key methods for listed companies to reward their investors. Regardless of the specific format, she added, each approach underscores the company's belief in its own value and long-term growth prospects.
Cancellation-style buybacks gain momentum
Cancellation-style buybacks have emerged as the standout trend, with their frequency of use and level of market acceptance climbing steadily and showing notable growth. In particular, a number of heavyweight listed companies have successively unveiled cancellation-style buyback proposals.
Contemporary Amperex Technology Co Ltd (CATL) announced on September 3 that its board had approved a plan on July 24 and August 12 of 2026 to repurchase A-shares using no less than 20 billion yuan and no more than 40 billion yuan in self-owned or self-raised funds. The repurchased shares are intended for cancellation to reduce registered capital.
Foshan Haitian Flavouring and Food Co Ltd disclosed plans to repurchase shares worth between 1 billion yuan and 2 billion yuan at a price not exceeding 53 yuan per share. The repurchased shares will be used both for cancellation to reduce registered capital and for employee stock ownership plans or equity incentives. Specifically, 70% or more of the repurchased shares will go toward cancellation and registered capital reduction.
GigaDevice Semiconductor Inc announced that its chairman proposed repurchasing A-shares via centralized bidding transactions, with total funds ranging from no less than 1 billion yuan to no more than 2 billion yuan. All repurchased shares will be cancelled to reduce registered capital.
In addition, several other listed companies, including Hubei Xingfa Chemicals Group, Midea Group, JinkoSolar Holding, and Macmic Science & Technology, have converted shares previously bought back for market value maintenance or equity incentives into cancellations to reduce capital.
Wu Wanying observed that compared with holding shares as treasury stock or using them for equity incentives, cancellation-style buybacks permanently reduce total share capital. This approach boosts earnings per share when profits remain unchanged, which is more effective at improving shareholder returns. Hu Qimu believes that cancellation leads to a genuine contraction in share capital, driving up earnings per share and return on equity. Complementing cash dividends, this represents a standard practice for rewarding investors in mature capital markets. Going forward, as more companies advance and execute their buyback plans, the wave of intensive repurchases across A-shares is likely to continue, providing additional support for market stability and bolstering investor sentiment.
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