3 Brokerages Announce Share Buybacks Totaling Up to 700 Million Yuan to Support Stock Prices
Claire Weston
Huaan Securities, Guolian Minsheng, and Guojin Securities plan combined buybacks of ¥350 million to ¥700 million — a collective real-money signal after the brokerage sector fell to decade-low valuations.
How much is each firm putting up?
Huaan Securities (华安证券) saw its closing price drop a cumulative 26.46% over 13 straight trading days, triggering a mandatory buyback clause. Its chairman proposed a ¥100–200 million repurchase using the firm's own funds.
Guolian Minsheng (国联民生) did not hit the mandatory threshold but fell 24.47% last year and another 11.8% this year. It voluntarily announced a ¥100–200 million buyback.
Guojin Securities (国金证券) had its controlling shareholder propose a ¥150–300 million repurchase at no more than ¥13 per share. As of June 30, it had already bought back 10.25 million shares for ¥89 million.
Why are some forced and some voluntary?
Huaan's buyback was rule-triggered — the Shanghai Stock Exchange requires a repurchase when a stock's cumulative decline hits 20% within 20 trading days. This is a regulatory floor.
Guolian Minsheng and Guojin acted voluntarily, stepping in before any rule compelled them. This means → management judged the stock was well below intrinsic value and put its own money behind that view.
In plain terms = one firm was told "you must buy"; two firms said "we want to buy." The voluntary signal is stronger.
What happens to the repurchased shares?
Huaan's announcement explicitly states that 12 months after filing the buyback results, the firm may sell the repurchased shares via centralized auction trading.
This means → the buyback is not just short-term price support — it is a medium-to-long-term capital play. Buy low now, potentially sell higher later.
Market observers note this dual "stabilize + arbitrage" nature could draw more brokerages into a broader buyback wave.
How bad is the broader market selloff?
Since July, A-shares have pulled back sharply: the ChiNext index fell 21.05%, the CSI 1000 dropped 18.64%, and the CSI 300 lost 9.04%.
The securities index — the brokerage sector's dedicated benchmark — has fallen 19.05% over nearly a year since peaking in August 2025.
This reflects a sector-wide problem, not company-specific weakness: depressed market sentiment has dragged down valuations across the entire industry.
What do sell-side analysts say?
Kaiyuan Securities' Gao Chao notes that among 20 brokerages with mid-year earnings previews, median profit rose 91% year-on-year and 63% quarter-on-quarter — earnings are growing, but valuations have not caught up.
Guojin Securities' Shu Siqin provides hard numbers: the sector trades at just 1.19× price-to-book and 15× price-to-earnings, sitting at the 16th and 4th percentiles of the past decade. In plain terms = in ten years, there have been almost no moments cheaper than now.
Some leading brokerages trade below 10× forward P/E and below 1× book value. Shu calls the sector "well-positioned for both offense and defense."
What to watch next?
The key test: whether this buyback wave draws more brokerages in and, on the technical side, whether the sector can hold the 60-day moving average as support.
This means → if the 60-day line breaks, the buyback capital may only be slowing the decline rather than reversing it.
The Shanghai Composite has slipped below 3,800. Whether the brokerage sector can break out of its year-long weakness hinges on this buyback cycle — the market's first real test window.
Content is for reference only, not financial advice.