From Traditional Industries to Hard Tech: New Changes in A-Share Buybacks and Shareholding Increases

On November 2, the People's Bank of China and the China Securities Regulatory Commission convened a meeting to study ways to promote the use of capital market tools. On the same day, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission summoned banks to study optimizing the policy on relending for share buybacks and increased holdings. Capital market support tools have once again drawn attention, and share buybacks and increased holdings by listed companies have ushered in a new observation window. In terms of industry distribution, traditional industries such as home appliances, transportation, and building materials have been important forces behind buybacks and increased holdings over the past two years. Since September this year, hard-tech companies such as semiconductor and optical module firms have rolled out buyback plans, becoming a focus of market attention. At the same time, listed companies controlled by central and state-owned enterprises have continued to invest, providing important support for buybacks and increased holdings. From traditional industries to hard tech, from increased holdings by major shareholders to cancellation-style buybacks by listed companies, the actions of industrial capital are showing new structural changes.