YICAI | Share Buybacks for "Share Cancellation" or "Market-Stabilizing" Gain Momentum on the SSE Main Board for Shoring Up Market Sentiment against Headwinds

Amid heightened volatility in the secondary market, a growing number of listed companies are turning to share buybacks. Since July, several major Main Board companies, including COSCO Shipping Holdings, Juneyao Airlines, and Wangfujing Group, have rolled out new buyback plans. So far in July, 13 new buyback programs have been launched by SSE Main Board companies, nearing the average monthly number of new plans in the first half of the year (12.5).

A notable shift has emerged in the latest wave of buybacks. Compared with the more traditional use of shares for incentives, buybacks aimed at cancellation or at safeguarding shareholder interests have become increasingly prevalent. Of the 13 new buyback plans announced by SSE Main Board companies since July, those categorized as "market-stabilizing" or "share cancellation" programs accounted for more than 60%.

Data shows that since the beginning of 2026 through July 13, the SSE Main Board companies have brought in nearly 90 buyback initiatives, with the planned repurchase ceiling close to RMB 38 billion. During the same period, 110 companies announced shareholding increase plans, with a combined upper limit of nearly RMB 14 billion. (Yicai, Huang Siyu)