(Bloomberg) — Buyback plans announced in China this month have reached the most since a stock rout in February 2024, a sign that companies are putting in concerted effort to offset the market impact from US tariffs.
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Share repurchases pledged by 139 companies in Shanghai and Shenzhen amounted to 44.1 billion yuan ($6 billion) as of Thursday, according to exchange data compiled by Bloomberg. Such proposals, along with exchange-traded fund purchases by state funds, have helped soothe investor sentiment.
The largest plan came from battery giant Contemporary Amperex Technology Co. (300750.SZ), which aimed for as much as 8 billion yuan, followed by XCMG Construction Machinery Co.’s 3.6 billion yuan and Midea Group Co.’s 3 billion yuan.
While the big headline figures might have reassured investors that companies stand ready to scoop up their shares should there be a selloff, the actual buying may take time as deadlines extend to as far as late 2026. Chinese companies are also not obliged to fulfill their maximum pledge.
Buybacks implemented in April — including from plans made in prior months — was 5.2 billion yuan, compared to 6.9 billion yuan of buying in March.
The CSI 300 Index (000300.SS) has fallen less than 3% this month. That’s better than the near 6% drop in the Hang Seng China Enterprises Index, but trails the swift rebounds seen in South Korea and Indian markets following the April 2 tariff shock.
—With assistance from Julie Chien.
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