CICC: How to View the New Landscape of A-Share Buybacks?

According to a report from China International Capital Corporation (CICC), the number and scale of share buyback plans in A-shares in July significantly increased. Statistics from Wind show that in July, A-share listed companies published a total of 266 buyback plans, with a proposed buyback amount of about 90 billion yuan; in the same period in 2025, there were 150 plans and 16.5 billion yuan, reflecting year-on-year increases of 76% and 444%, respectively. From January to July 2026, the actual buyback amount in A-shares totaled 86.6 billion yuan, with July alone seeing an actual buyback of 21.7 billion yuan, a year-on-year increase of 46% and a month-on-month increase of 33%. Currently, this remains a relative low point for A-shares this year, and recovery is in progress. The factors triggering this round of adjustments are largely short-term and phase-specific and have been adequately digested. Internally, the previously high trading congestion in the technology sector has significantly eased, and panic sentiment and sell-off pressure have also been released. At the same time, positive factors are accumulating. Currently, leading companies in certain growth sectors still exhibit resilient fundamentals, and listed companies are conveying confidence in their own value and long-term development prospects through buybacks, increases in holdings, and dividends; the interim results gradually disclosed in August are expected to provide fundamental support for the market; compared to major overseas markets, the overall valuation of A-shares remains attractive; the continued influx of medium- and long-term funds will also help enhance market stability. From a medium-term perspective, we firmly believe that the A-share market will continue the upward trend since September 2024. The resonance between the restructuring of international order and the trend of innovation in China's industries is the core driving force behind this round of market appreciation and the revaluation of Chinese assets. Currently, these two conditions remain intact and will continue to support the performance of Chinese assets. In terms of allocation, companies that have recently announced buybacks are expected to show relatively good performance, and with the recovery of investor sentiment, there is room for stock price recovery.