A-Share Cancellation Buybacks Dominate First Seven Months of 2026, Plans Exceed RMB 100 Billion

In the first seven months of 2026, A-share listed companies announced active buyback plans with a combined upper limit of nearly RMB 164.8 billion, approaching the historical peak of 2024. In addition, chairmen or actual controllers of more than 20 companies proposed buybacks, with a proposed upper limit close to RMB 12 billion, of which Zhongji Innolight's chairman proposed a buyback of RMB 4 billion to RMB 8 billion. Including these proposals, the total proposed buyback amount for listed companies since 2026 would approach RMB 180 billion, surpassing the record set in 2024.

In March 2025, the China Securities Regulatory Commission revised the "Rules for Share Buybacks of Listed Companies", clarifying four purposes for buybacks.

Cancellation buybacks have become mainstream. Based on completed buybacks, the amount of cancellation buybacks in A-shares in 2025 exceeded RMB 42.8 billion, accounting for more than 38% of the total buyback amount that year, setting a three-year high for the proportion. In the first seven months of 2026, cancellation buyback amounts exceeded RMB 15 billion. Based on buyback plans, since 2026, the upper limit of proposed buyback amounts explicitly for cancellation purposes has exceeded RMB 100 billion, representing more than 60% of the year's proposed buyback amounts.

The buyback completion rate hit a record high. In 2024 and 2025, the total completed buyback amounts across the market both exceeded RMB 100 billion, with the ratio to the lower limit of planned amounts exceeding 125% in both years. In the first seven months of 2026, this ratio reached 134%. Cases failing to meet the target have decreased significantly; the proportion of companies that did not meet the target fell to within 4% in 2025, and further dropped to about 2.5% in the first seven months of 2026, the lowest ever.

Buybacks in the technology and high-end manufacturing sectors were active. In the first seven months of 2026, the upper limit of buyback amounts in industries such as electronics, communications, defense and military industry, and electric equipment collectively exceeded RMB 78 billion, accounting for more than 47% of the entire market, with the electric equipment sector accounting for over 28%. CATL's proposed buyback upper limit reached RMB 40 billion, to be used for cancellation and reduction of registered capital, setting a new A-share record. Wuliangye, Midea Group, Haier Smart Home, and Zijin Mining all launched large-scale buyback plans, with the first three each having proposed buyback upper limits of no less than RMB 6 billion.

Some companies have compliance issues. In the first seven months of 2026, Jingxing Paper received a warning letter because it committed to a minimum buyback of RMB 80 million but actually repurchased only RMB 4.5741 million. Guanghui Logistics committed to a minimum buyback of RMB 200 million but actually repurchased about RMB 100 million, later rectifying to RMB 183 million. Four companies, including Zhuolang Intelligent, Sieyuan Electric, and Goldwind Science & Technology, announced termination of buybacks, citing reasons such as share prices remaining above the buyback upper limit for a long time and funding pressures.