Chinese Firms Announce RMB 67.6 Billion Buyback in July 2026; CATL RMB 40 Billion, Foxconn RMB 2 Billion

To curb the stock market sell-off and boost investor confidence, Chinese companies are launching the largest stock buyback program since the tariff threat escalation in April 2025. Exchange data show that mainland Chinese companies have announced total stock buyback plans worth RMB 67.6 billion this month, close to the level seen during the tariff-induced market rout in 2025. The most aggressive buyback plans include CATL repurchasing up to RMB 40 billion in shares and Foxconn Industrial Internet repurchasing up to RMB 2 billion.

Concerns over high valuations and massive capital expenditure at artificial intelligence-related companies have exacerbated a global equity sell-off, triggering this wave of stock buybacks. Meanwhile, the Chinese government is also introducing new support measures and channeling 'national team' funds into the market. This scene is similar to April 2025, when Chinese listed companies also launched buyback plans to stem the market decline after the entry of national team funds.

Chinese stocks performed poorly in July, with the CSI 300 index falling over 7%, on track for its biggest monthly decline since October 2022. The tech-heavy STAR 50 index dropped about 24%, the largest decline since the index was launched in 2020.