Chinese A-share Market Hits Record-high Share Buybacks In First Eight Months

BEIJING, Sept 11 (Bernama-Xinhua) -- China's A-share listed companies saw a record surge in share buybacks during the first eight months of 2024, according to data from the China Securities Regulatory Commission, reported Xinhua.

This marks a significant milestone, reflecting growing confidence among companies in their market valuation and future performance.

Share buybacks are an important tool for listed companies to maintain corporate value, reward investors and optimise equity structure.

bootstrap slideshow

During the period, about 1,900 A-share listed companies carried out share buybacks, with an aggregated value exceeding 130 billion yuan (about US$18.26 billion), both reaching historical highs.

Meanwhile, major shareholders of A-share listed companies have increased their stakes, and more dividends have been paid.

From January to August, more than 860 A-share listed companies saw major shareholders increase their holdings in the secondary market. The amount of increase exceeded 55 billion yuan, which is a significant expansion compared to the same period last year.

In the meantime, a total of 663 announcements of mid-term dividends have been made by companies listed in the Shanghai and Shenzhen stock exchanges. The expected dividend payout is about 533.7 billion yuan, more than doubling from the previous year.

Industry insiders said that share buybacks demonstrate the companies' confidence in their stable operation and long-term development, and also indicate a positive outlook on the development of the industries they operate in.  

--BERNAMA-XINHUA