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

Securities Daily reporter Wang Jingru

Recently, share buybacks in the A-share and Hong Kong-share markets have continued to heat up. Many listed companies have closely disclosed buyback progress or announced large buyback plans, sending positive signals of stabilizing market expectations and enhancing investor confidence.

On April 2, a notice from Orbbec Opto-Electronics Technology Group Co., Ltd. (hereinafter referred to as “Orbbec Opto-Electronics”) showed that, as of March 31, the company had cumulatively repurchased 566,000 shares, accounting for 0.14% of the total share capital. The company had paid RMB 45.2854 million in total, and the repurchase price range was RMB 74.82 per share to RMB 86.50 per share. Among them, in March alone, it repurchased 227,000 shares and paid RMB 17.2688 million.

A relevant person in charge at Orbbec Opto-Electronics said: “Continuously carrying out share buybacks demonstrates the company’s pragmatic actions in stabilizing market expectations and safeguarding shareholders’ value.”

On the same day, a notice from China Beverage (Group) Co., Ltd. (hereinafter referred to as “China Beverage”) stated that the company plans to repurchase its A-share shares through centralized competitive trading. The repurchase amount will be no less than 10 billion yuan (inclusive) and no more than 20 billion yuan (exclusive). The repurchase funds will come from the company’s own funds, and the repurchase price will not exceed RMB 248 per share. Of the repurchased shares, at least 90% will be used for cancellation to reduce registered capital, and the remaining portion is intended to be used for an employee share ownership plan and/or equity incentives.

Earlier, Midea Group Co., Ltd. (hereinafter referred to as “Midea Group”) rolled out a maximum 130 billion yuan share buyback plan. The announcement showed that the company plans to repurchase A-share shares via centralized competitive trading, with a repurchase amount of no less than 65 billion yuan and no more than 130 billion yuan, and a repurchase price not exceeding RMB 100 per share. The repurchase funds will come from the company’s own funds and special loans provided by the Industrial and Commercial Bank of China, Shunde Sub-branch (the loan will not exceed 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 the 2025 first tranche of its A-share repurchase program will be adjusted from “no less than 15 billion yuan and no more than 30 billion yuan” to “no less than 30 billion yuan and no more than 60 billion yuan,” and the implementation period will be extended to 12 months from the date when the board approves the change to the repurchase plan. The purpose of the repurchased shares will change from “to be used for an employee share ownership plan or equity incentives” to “to be used for cancellation to reduce registered capital.”

A relevant person in charge at SF Holding said: “The company has proactively increased its buyback efforts, demonstrating its firm confidence in future development. Going forward, we will continue to create greater value for investors by taking 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, as many as 37 listed companies conducted share repurchases on March 30 alone, with a total of 73.3513 million shares repurchased and a total repurchase amount of HKD 1.495 billion. Industry participants believe that share repurchases have gradually shifted from a phased market value management tool to an important means of serving companies’ long-term strategies.

Zhang Xiaorong, president of the Institute for In-Depth Technology Research, said in an interview with Securities Daily reporter: “Leading companies have stronger cash flow and financing capabilities, and their buyback actions often carry a demonstration effect. On the one hand, large-scale buybacks can convey to the market the company’s recognition of its long-term value. On the other hand, by increasing the cancellation ratio and reducing the number of shares in circulation, it also helps optimize the capital structure and improve earnings per share levels. In the current market environment, when leading companies step up buybacks, 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, founder of the Institute of New Economics, said in an interview with Securities Daily reporter: “When implementing buybacks, companies should clearly define the purpose and strategy of the repurchase. Buybacks are not only meant to boost the share price or return value to shareholders, but should also serve the company’s long-term development. At the same time, companies should strengthen communication with investors and improve internal management and risk controls to ensure that buyback activities are compliant and steady, thereby better achieving an increase in corporate value.”