To The Moon

Recently, listed companies on the Shanghai and Shenzhen exchanges, including ChangXin Technology and Eoptolink, have successively disclosed share buyback proposals, with major shareholders increasing their stakes in tandem. Meanwhile, large-scale buyback programs previously launched by companies such as CATL and Midea Group continue to be implemented, and the coverage of interim dividends has further expanded. Listed companies and their major shareholders are conveying development confidence through concrete actions, providing support for the stable operation of the market.

According to statistics, from the beginning of 2026 through October 19, the Shanghai market added 541 new buyback and shareholder increase plans, with a total upper limit exceeding 115.3 billion yuan; the Shenzhen market disclosed 505 buyback and shareholder increase plans, with a total upper limit of 168.283 billion yuan. The combined upper limit of related plans across both markets exceeds 280 billion yuan. As new proposals are successively disclosed and existing plans continue to advance, the positive role of buybacks and shareholder increases in stabilizing market expectations has drawn attention.

Technology Companies Engage in Frequent Buybacks

Entering October, technology companies have become important participants in buybacks across the Shanghai and Shenzhen markets. On the evening of October 16, ChangXin Technology announced that company chairman Zhu Yiming proposed using self-owned or self-raised funds to repurchase the company's A-shares through centralized bidding, with an amount of no less than 1 billion yuan and no more than 2 billion yuan, intended for employee equity incentives, employee stock ownership plans, or reduction of registered capital, with an implementation period of 12 months from the date of approval by the board of directors or shareholders' meeting.

On the Shenzhen side, on October 15, Eoptolink disclosed an announcement that the company chairman proposed a buyback of no more than 1 billion yuan, intended for equity incentives or employee stock ownership plans. The next day, Zhen Ding Technology and Victory Giant Technology successively disclosed chairman buyback proposals, with upper limits of 500 million yuan and 300 million yuan respectively, with the repurchased shares also intended for equity incentives or employee stock ownership plans. Analysts noted that from the relevant announcements, safeguarding investor interests and improving medium-to-long-term incentive mechanisms are common considerations cited by multiple companies. While conveying development confidence, some enterprises also hope to further align employee interests with the company's long-term development through subsequent equity incentive arrangements.

Jiang Ying, chief communications analyst at Kaiyuan Securities, believes that the密集 buybacks and equity incentives by multiple AI computing power companies reflect the confidence of related enterprises in the industrial chain regarding future prosperity and their own value. While listed companies propose buybacks, major shareholders are also expressing recognition of the company's long-term value through stake increases, with some shareholders further raising the upper limits of their original plans. On October 12, Runze Technology disclosed a controlling shareholder increase plan, with a proposed increase amount of no more than 1 billion yuan. Previously, the largest shareholder of Inovance Technology released an increase plan on September 24, proposing to increase holdings by no more than 200 million yuan. The relevant shareholders all cited confidence in the company's future development and recognition of long-term investment value as important bases for the increase.

Kailun Co. (rights protection) saw its shareholder increase plan upgraded. On October 15, the company announced that shareholders holding more than 5% of shares proposed to raise the upper limit of the previous increase plan from 120 million yuan to 280 million yuan.

Large Buyback Programs Continue to Be Implemented

While new proposals are being disclosed, large buyback programs by leading companies are also gradually being converted into actual investment. On the Shenzhen side, in July this year, CATL disclosed a buyback plan to repurchase company shares for no more than 40 billion yuan. Midea Group and Gree Electric successively launched buyback plans at the end of April, with upper limits of 13 billion yuan and 10 billion yuan respectively. The combined upper limit of the three companies' related plans is 63 billion yuan. According to disclosed implementation progress, CATL, Midea Group, and Gree Electric have respectively accumulated buybacks of approximately 3.3 billion yuan, 10.731 billion yuan, and 1.083 billion yuan.

On the Shanghai side, leading enterprises such as China Yangtze Power, Haier Smart Home, and PetroChina have related buyback or shareholder increase plans with upper limits exceeding 5 billion yuan. The use of buybacks has also drawn attention. Both CATL and Midea Group have explicitly stated that the relevant repurchased shares will be used for cancellation and reduction of registered capital. On October 15, T&S Communications disclosed an announcement that the company's controlling shareholder proposed a buyback of no more than 150 million yuan, all intended for cancellation and capital reduction. Unlike using shares for equity incentives or employee stock ownership plans, cancellation-type buybacks reduce total share capital, thereby enhancing earnings per share when profits remain unchanged.

Some STAR Market companies have also proposed new buyback arrangements before or after completing previous rounds. On October 19, Biwin Storage announced that its 2026 centralized bidding buyback plan had been completed, with a cumulative buyback of 1.22 million shares at a cost of approximately 250 million yuan, and the relevant shares are to be cancelled on October 20. On October 15, the company's actual controller and chairman, Sun Chengsi, had already proposed a new round of buybacks of 200 million to 250 million yuan, with all shares also intended for cancellation and capital reduction. Hygon Information plans to repurchase 500 million to 800 million yuan, marking the company's third buyback, having previously announced plans to cancel some repurchased shares. Montage Technology plans to repurchase 300 million to 500 million yuan, marking the company's sixth buyback, with cumulative buyback amounts previously approaching 1.5 billion yuan. Espressif Technology launched a new round of plans the day after completing its previous buyback.

Currently, existing plans are still advancing. Taking the Shenzhen market as an example, Wind data shows that as of October 19, there were 214 buyback plans in progress on the Shenzhen market, with an upper limit of 114.098 billion yuan, and 89 shareholder increase plans in progress, with an upper limit of 14.142 billion yuan.

Interim Dividends Continue to Expand

Beyond buybacks and shareholder increases, cash dividends are also an important way for listed companies to give back to investors. Recently, high-dividend assets have drawn market attention. From October 8 to 19, the Shenwan Banking Index rose 3.09% cumulatively. As of October 19, the Shenwan Coal and Petroleum & Petrochemical indices had risen 3.44% and 1.62% respectively during the month. According to statistics, as of October 19, more than 300 Shanghai-listed companies had dividend yields exceeding 3%, and the overall dividend yield of the Shanghai stock market was 2.22%.

Chen Gang, chief strategy analyst at Soochow Securities, believes that the dividend rally has dual support from institutional and capital factors. On one hand, the capital market dividend system continues to be optimized, and listed companies' awareness of rewarding shareholders has strengthened. On the other hand, in a low-interest-rate environment, long-term funds continue to increase allocation to high-dividend assets. The scale and coverage of interim dividends provide further support for shareholder returns. Tonghuashun data shows that as of October 19, more than 430 Shanghai-listed companies had introduced interim dividend plans, with total planned payouts exceeding 630 billion yuan. Among them, the banking sector's related dividend plans totaled 258.8 billion yuan, with Industrial and Commercial Bank of China and China Construction Bank both exceeding 50 billion yuan in dividend scale. Cash dividends in the petroleum & petrochemical, communications, and non-bank financial sectors amounted to 99 billion yuan, 70.3 billion yuan, and 61.8 billion yuan respectively.

In recent years, more and more companies have begun to join the ranks of interim dividends. In the first half of 2026, 103 Shanghai-listed companies introduced half-year report dividends for the first time in nearly three years, including China Shipbuilding and CMOC Group. Among companies that have disclosed half-year report dividends, more than half increased their dividend amounts year-on-year this year. Among companies with dividend amounts exceeding 1 billion yuan, nearly 90% have implemented half-year report dividends for two consecutive years, further enhancing the continuity of interim dividend arrangements.

Li Qiusuo, chief domestic strategy analyst at CICC, believes that in addition to traditional dividend sectors such as finance, energy, and utilities, mature manufacturing leaders with technological and scale advantages are gradually moving toward a "profit growth + stable dividends" model. Some technology companies with strong cash flow generation capabilities and controllable capital expenditures are also beginning to exhibit high-dividend investment characteristics, and the boundaries of dividend assets are expanding.

Shareholder returns are also being incorporated into more systematic operational and governance arrangements. Since the Shanghai Stock Exchange issued the "Improving Quality and Efficiency, Emphasizing Returns" 2.0 special action initiative, companies such as COSCO Shipping Holdings and Huaqin Technology have successively disclosed action plans. Currently, more than 20 Shanghai-listed companies have disclosed related plans, proposing quantifiable specific measures around operational improvement, shareholder returns, and standardized governance, promoting the connection between shareholder returns and operational quality improvement.