The A-share buyback wave continues. In recent years, encouraged and promoted by regulators, the A-share market has seen successive waves of buybacks. Data shows that this year, the cumulative buyback amount in the A-share market has exceeded 130 billion yuan, marking the second-highest annual level on record.
Buybacks have significantly boosted the stock performance of listed companies. The stock buyback index has surged over 27% year-to-date, hitting a record high and far outperforming the Shanghai Composite Index during the same period.
More than 100 stocks that conducted buybacks this year have seen their prices double. Shenghong Technology leads with a 532.28% year-to-date gain. Stocks like Tengjing Technology, Haike Xinyuan, and Ruisheng Intelligence have all risen over 300%, while Zhejiang Rongtai, Zhende Medical, and Demingli have surged over 200%.
**Five Industries See Buybacks Exceeding 10 Billion Yuan** Statistics show that since 2025, over 1,400 listed companies in the A-share market have implemented buybacks, totaling 134.225 billion yuan. This marks the fourth time in A-share history that annual buybacks have surpassed 100 billion yuan, following 2021 (120.689 billion yuan), 2022 (101.908 billion yuan), and 2024 (165.877 billion yuan).
In terms of the number of companies, the pharmaceutical industry leads with 156 firms conducting buybacks this year. The electronics, machinery, basic chemicals, and power equipment sectors follow closely, with 155, 146, 123, and 118 companies, respectively.
By buyback amount, the pharmaceutical and biotech sector tops the list at 14.349 billion yuan. Power equipment, electronics, home appliances, and machinery industries each exceeded 10 billion yuan in buybacks.
Industries with high buyback amounts have performed well. The power equipment and electronics sector indices have risen over 30% year-to-date, while the machinery index has gained more than 20%.
**14 Companies Conduct Buybacks Exceeding 1 Billion Yuan** Among listed firms, Midea Group leads with buybacks exceeding 9.6 billion yuan this year. The company has announced two buyback plans: one for up to 10 billion yuan (minimum 5 billion yuan) to reduce capital and implement equity incentives or employee stock ownership plans, and another for up to 3 billion yuan (minimum 1.5 billion yuan) for similar purposes.
Other companies, including Kweichow Moutai, CATL, and XCMG, have also conducted buybacks exceeding 1 billion yuan this year.
Kweichow Moutai completed a nearly 6 billion yuan buyback plan in 2024 and announced a new plan in early November for 1.5–3 billion yuan to reduce capital.
**High-Value Buybacks + Market-Beating Declines Highlight Potential Stocks** Buybacks are often interpreted as a sign of management's confidence in future growth, stabilizing or boosting stock prices. Canceled buybacks reduce outstanding shares, increasing earnings per share and investor appeal.
Additionally, buybacks signal strong cash flow and financial health, enhancing market trust.
Among companies that conducted buybacks this year, over half outperformed the Shanghai Composite Index, with 111 stocks doubling in price. However, some quality firms saw no significant price gains despite buybacks.
Data reveals that among stocks with buybacks exceeding 100 million yuan, 36 have declined year-to-date and are covered by over 10 analysts.
Notable industry leaders on the list include Kweichow Moutai (premium liquor), Haier Smart Home (appliances), Wanhua Chemical (chemicals), SF Holding (logistics), and China Merchants Shekou (real estate).
In terms of upside potential, stocks like Xueda Education, BOE Technology, and Sinocare have consensus target prices over 50% above their latest closing prices. Runze Technology, MicroPort CardioFlow, Livzon Group, and Tigermed offer over 40% upside.
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