In the last three years, it is estimated that Chinese companies have returned around RMB2 trillion ($369 billion) back to shareholders through buybacks and dividends, with this number expected to grow to over RMB3 trillion in 2024.
A growing number of Chinese companies have been repurchasing their own stock over the past 18 months, notes Eastspring Investments’ chief investment officer Vis Nayar, which could be viewed positively if it is part of a longer-term market adjustment process.
In his weekly bulletin, released Dec 3, Nayar says share buybacks in China have increased to record levels as the Chinese government continues to encourage this to assist the stabilisation of the stock market.
