Buybacks Surge in China Amid Stock Market Turmoil and Tariff War
Buybacks and Stake Increases by Chinese Companies
This week, China's publicly listed companies have unveiled a staggering 20 billion yuan (US$2.73 billion) in buybacks to prop up their stocks during the ongoing turmoil in global equity markets triggered by US President Donald Trump's tariff war. Over 100 companies, including PetroChina and Midea Group, have announced their share repurchase plans. In particular, CATL, a key player in electric vehicle battery production, aims to set aside up to 8 billion yuan to support its shares.
State Support and Market Confidence
These buybacks are part of a coordinated effort alongside state funds backed by China's US$1.3 trillion sovereign wealth fund. Analysts like Xu Chi from Zhongtai Securities observed that these moves can effectively contain market panic and instill confidence about future earnings among investors.
- PetroChina pledges up to 5.6 billion yuan to strengthen its stake.
- CNOOC plans a 4 billion yuan buyback.
- Midea allocates 3 billion yuan to support its stock.
Implications for Future Policies
The Chinese government plans to amplify policy easing measures in response to the tariff impacts. Experts predict a combination of fiscal and monetary policies, potentially involving rate cuts and stabilizing funds. Goldman Sachs projects more interest rate reductions, aiming to alleviate the over-pessimism surrounding the stock market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.