Zhong Guo Jing Ying Bao·2025-05-20 12:37Core Viewpoint - The Chinese stock market is witnessing a significant increase in share buybacks and dividends, indicating a strong commitment from listed companies to return value to investors, with record highs in both dividends and share repurchases in 2024 [1][3]. Group 1: Share Buybacks and Dividends - In 2024, A-share listed companies implemented dividends totaling 2.4 trillion yuan and repurchased shares worth 147.6 billion yuan, both reaching historical highs [1]. - The dividend yield of the CSI 300 index is approximately 3.6%, reflecting enhanced stability and predictability in returns for investors [1]. - As of May 19, 622 listed companies or significant shareholders have engaged in share buyback activities, with a total amount of approximately 120.76 billion yuan [1]. Group 2: Market Confidence and Valuation - The collective action of companies engaging in buybacks and increases in shareholdings is expected to boost market confidence in the short term, signaling recognition of their own value and future prospects [2][3]. - The current valuation level of A-shares remains relatively low, with a price-to-earnings ratio of 12.6 for the CSI 300 index, which is significantly lower than major overseas market indices, highlighting the investment value [1]. Group 3: Policy Support and Mechanisms - The introduction of stock buyback and repurchase loan tools serves as a micro-level counter-cyclical adjustment mechanism, with initial quotas set at 500 billion yuan and 300 billion yuan respectively [3]. - Over 300 listed companies have publicly disclosed buyback plans since April, with total amounts exceeding 100 billion yuan, including both private and state-owned enterprises [3]. - The State-owned Assets Supervision and Administration Commission has expressed strong support for central enterprises to actively engage in buybacks and increases in shareholdings to maintain market confidence [5]. Group 4: Challenges and Future Outlook - There are concerns regarding the effectiveness of some companies' buyback efforts, with some perceived as insufficient, potentially undermining the intended positive signal to the market [6]. - The market is also facing challenges from the upcoming release of shares worth nearly 190 billion yuan, which may counteract the effects of buybacks [6]. - The China Securities Regulatory Commission is expected to continue guiding companies to enhance investment value through cash dividends, buybacks, and mergers and acquisitions [6].