Public companies' buyback programs continue to heat up, with leading firms increasing their efforts signaling a positive outlook

证券日报 reporter Wang Jingru

In recent days, share buybacks in the A-share and Hong Kong-stock markets have continued to heat up. Multiple listed companies have released buyback updates or unveiled large buyback programs in quick succession, sending positive signals of stabilizing market expectations and boosting investor confidence.

On April 2, Oupai Zhongguang Technology Group Co., Ltd. (hereinafter referred to as “Oupai Zhongguang”) announced that, as of March 31, the company had cumulatively repurchased 566k shares, accounting for 0.14% of the total share capital. The company had paid a cumulative total of RMB 45.2854 million, and the repurchase price range was RMB 74.82 per share to RMB 86.50 per share. Among them, in March alone, it repurchased 227k shares and paid RMB 17.2688 million.

A relevant person in charge at Oupai Zhongguang said, “Continuously carrying out share buybacks demonstrates the company’s pragmatic actions in stabilizing market expectations and safeguarding shareholder value.”

On the same day, China Beverages (Group) Co., Ltd. announced that it plans to repurchase A-share shares through centralized competitive trading. The repurchase amount will not be less than RMB 1.0 billion (inclusive) and will not exceed RMB 2.0 billion (exclusive). The funds for this buyback will come from the company’s own funds. The repurchase price will not exceed RMB 248 per share. Of the repurchased shares, no less than 90% will be used to cancel the shares and reduce registered capital; the remaining portion is planned to be used for an employee stock ownership plan and/or equity incentives.

Earlier, Midea Group Co., Ltd. (hereinafter referred to as “Midea Group”) unveiled a maximum RMB 13.0 billion buyback plan. The announcement shows that it plans to repurchase A-share shares through centralized competitive trading. The repurchase amount will not be less than RMB 6.5 billion and will not exceed RMB 13.0 billion, and the repurchase price will not exceed RMB 100 per share. The funds for the buyback will come from the company’s own funds and special loans provided by the Bank of China Shunde Branch (with the loan not exceeding 90% of the repurchase amount).

SF Holding Co., Ltd. (hereinafter referred to as “SF Holding”) has also increased its buyback efforts. The company announced that the total repurchase funds for its 2025 A-share repurchase program No. 1 would be adjusted from “not less than RMB 1.5 billion and not more than RMB 3.0 billion” to “not less than RMB 3.0 billion and not more than RMB 6.0 billion,” and the implementation period for the repurchase would be extended to 12 months from the date when the board of directors approves the change to the repurchase plan. The intended use of the repurchased shares was changed from “for an employee stock ownership plan or equity incentives” to “for cancellation and reduction of registered capital.”

A relevant person in charge at SF Holding said, “The company has proactively increased its repurchase intensity, demonstrating its firm confidence in future development. In the future, we will continue to create greater value for investors through measures such as improving operating efficiency and refining market value management.”

As for the Hong Kong-stock market, buybacks are also active. According to Wind data, on just March 30 alone, 37 listed companies conducted share buybacks, for a total of 73.3513 million shares repurchased and a buyback amount of HKD 566k. Industry insiders believe that share buybacks have gradually shifted from being a phased market value management tool to an important means of serving companies’ long-term strategies.

Zhang Xiaorong, president of the iResearch Institute for Technology and Research, said in an interview with a reporter from Securities Daily, “Large companies have stronger cash flow and financing capacity, and their buyback actions often have a demonstrative effect. On the one hand, large-scale buybacks can convey to the market the company’s recognition of its own long-term value. On the other hand, by increasing the cancellation proportion and reducing the number of outstanding shares, it also helps optimize the capital structure and improve earnings per share. In the current market environment, when leading companies step up repurchases, they have, to a certain extent, played a role in stabilizing market expectations and guiding the allocation of medium- to long-term capital.”

Zhu Keli, founding president of the Institute of New Economic Research, said in an interview with a reporter from Securities Daily, “When implementing buybacks, enterprises should clarify the purpose and strategy of the repurchase. A buyback is not only meant to boost the share price or return value to shareholders; it should also serve the company’s long-term development. At the same time, communication with investors should be strengthened, and internal management and risk controls should be improved to ensure the repurchase actions are compliant and steady, thereby better achieving an enhancement of corporate value.”