China's capital market has seen a significant increase in stock buyback activities by listed companies on A-share market in the first half of 2024, showing great confidence of these companies in their future operations.
According to Choice data, as of Sunday, the cumulative amount of stock buybacks in the first half of 2024 was 99.2 billion yuan (about 13.89 billion U.S. dollars), more than the total amount for the whole year of 2023. A total of 1,652 listed companies conducted buyback activities, accounting for 32.3 percent of the total number of companies in the market.
Data showed that capital concerning industries such as electronics, medicine, basic chemicals, power equipment, new energy and machinery accounted for 58 percent of the total.
Experts said that, with the release of relevant policies on stock buybacks, the restraint mechanism on major shareholders' reduction of holdings and the inclusiveness of the buyback system have been continuously improved, which is one of the reasons driving the surge in stock buyback activities.
The surging buybacks also reflect the willingness of listed companies to actively maintain the value of their companies and their ability to accumulate operational cash flow, according to experts.
"After the sharp market fluctuations over the past period of time, the share prices of some high-quality listed companies have actually fallen below their intrinsic value. The companies have the motivation to boost market confidence through buybacks and demonstrate their optimism about future business prospects to the market," said Qin Peijing, chief strategy analyst at CITIC Securities.
In the first half of this year, share buybacks for cancellation purposes to boost market confidence has become a new trend, while the proportion of those for equity incentive purposes declined sharply.
According to Choice data, a total of 122 listed companies have announced the cancellation of shares after buybacks as of Sunday, which is close to the 143 companies that did so in the whole year of 2023.
"The cancellation of shares means that those shares will no longer participate in future circulation at the secondary market. As a matter of fact, this is conducive to increasing the return per share, as long as the total profit scale and dividends remain unchanged," said Qin.
Surging stock buybacks in H1 reflect listed companies' confidence in future operation: expert
Tajikistan's prized black cherries, reputed for their juicy flesh and robust flavor, have found steady demand in Chinese homes over the past decade, driven by their exceptional quality and competitive pricing.
The Central Asian nation's temperate continental climate, characterized by significant day-night temperature fluctuations and ample snow-capped mountains ensuring abundant water supply, provides ideal conditions for the thriving cultivation of Tajik cherries.
The "Black Cherry" variety stands out among Tajikistan's offerings, renowned for its large, plump fruits bursting with sweetness.
Tajikistan's relations with neighboring China have been put under the spotlight as Chinese President Xi Jinping is to pay a state visit to Tajikistan later this week following his state visit to Kazakhstan and attendance of a summit of the Shanghai Cooperation Organization in the Kazakh capital city of Astana.
Fruit grower Khursandmurad Tursunzoda, who oversees a 12-hectare orchard in the Gissar Mountains, has been dedicated to cultivating prized cherries.
"I have over 3,000 trees in my orchard, planted 12 years ago. During this season, we prune the branches and clear the weeds around the trees. If you want a good harvest, you must respect the trees, because they too are living beings observing how you treat them. If you care for them well, you will reap a bountiful harvest," said Tursunzoda, the cherry orchard owner.
Tursunzoda, who comes from a long line of fruit growers, has been passionately imparting his cherry-growing expertise to younger generations, stressing respect for trees and meticulous harvesting practices.
"From childhood, I involve them (children) in the work. I explain how to care for the trees and how to harvest. For example, I insist they pick cherries with the stem attached, which helps the cherries stay fresh longer," said Tursunzoda.
He proudly refers to his orchard as an "ecological orchard," highlighting its use of natural fertilizers, contributing to increased cherry yields and sales annually.
"Every evening, wholesalers gather at the orchard for a lively auction. Recently, I learned that one of my wholesalers exports our cherries to our neighbor, China. I'm delighted that connoisseurs of our cherries can enjoy them across the border in China," said Tursunzoda.
Official data confirms Tajikistan exported over 30 tons of cherries to China in 2023, transported via regular flights from Tajikistan's capital city of Dushanbe to Urumqi in northwest China's Xinjiang Uygur Autonomous Region.
"Over the past week, we've shipped three batches of cherries to China already. Today, another ton of these cherries is en route. Packed conveniently in boxes designed to hold three kilograms of cherries for convenient handling, our cherries are now in high demand among our neighbors," said Natan Mamedov, an entrepreneur.
Tajikistan's prized black cherries find favor in Chinese markets
