Chinese Listed Companies' Share Buybacks Hit Highest Level Since Trade War
nashnova research
Chinese listed companies have announced roughly RMB 67.6 billion in share buyback plans this month, nearing the April tariff-shock peak and marking the highest level since the trade war — driven by a CSI 300 drop exceeding 7% and a STAR 50 plunge of about 24%.
How large is this buyback wave?
Announced plans total roughly RMB 67.6 billion this month, approaching the peak set during the April 2025 tariff shock.
CATL (宁德时代) leads with a buyback of up to RMB 40 billion; Foxconn Industrial Internet (富士康工业互联网) follows at up to RMB 2 billion.
This means → CATL alone accounts for nearly 60% of the total. The wave is heavily concentrated in a handful of mega-caps.
How bad is the market sell-off?
The CSI 300 has fallen more than 7% in July, on track for its worst month since October 2022.
The STAR 50 has dropped roughly 24% — the steepest monthly decline since the index launched in 2020.
The main triggers are stretched global AI valuations and a broad tech-stock sell-off.
In plain terms = the STAR board lost nearly a quarter of its value in one month — a level of panic unseen in the board's history.
How do buybacks relate to the "national team"?
The buyback wave is running in tandem with Beijing's market-stabilization measures — fresh support policies and state-backed fund purchases.
During the April 2025 sell-off, corporate buybacks similarly followed after national-team buying, establishing a pattern: state funds lead, companies follow.
This reflects a coordinated playbook — buybacks function less as spontaneous corporate decisions and more as one arm of a policy-driven stabilization effort.
Can buybacks actually stabilize the market?
Chanson & Co. director Shen Meng says large-cap buybacks help "reduce the cost of market stabilization."
Yet he adds that investors remain doubtful about the long-term economic outlook; restoring confidence depends more on Beijing's overall economic-management plan for the second half than on buyback announcements.
Analysts broadly agree: buybacks may calm sentiment short-term, but without stronger earnings growth to underpin valuations, the effect of policy support and buybacks will be hard to sustain.
市场有风险，内容仅供研究参考，不构成投资建议。