Zheng Quan Shi Bao·2025-12-09 14:12Core Viewpoint - The article highlights the increasing trend of stock buybacks among A-share listed companies, with over 40% of buyback plans aimed at complete or partial cancellation, indicating a shift towards "cancellation-type buybacks" as a common practice in the market [1][5]. Group 1: Buyback Trends and Amounts - As of December 9, over 1500 billion yuan has been spent on stock buybacks in 2023, with leading companies like Midea Group, Kweichow Moutai, and CATL leading the way [2][5]. - Midea Group's buyback reached 10 billion yuan, making it the only "billion-level" buyback in A-shares this year, with 70% of the repurchased shares intended for cancellation [2][5]. - A total of 1303 companies have announced 1502 stock buyback plans this year, with 637 plans aimed at cancellation, representing 42.41% of the total, an increase from 38.33% in 2024 [5]. Group 2: Motivations Behind Buybacks - Companies are responding to policy incentives and are likely to receive more tax benefits or financial support, which encourages the normalization of cancellation-type buybacks [1][4]. - The buyback activity is seen as a signal of confidence in future operations, especially when stock prices are perceived as undervalued, potentially leading to positive market reactions [4][6]. Group 3: Implications for Market and Company Value - The practice of stock buybacks is aimed at enhancing company value and market competitiveness amidst global economic uncertainties [6]. - Buybacks can improve earnings per share (EPS) and attract long-term capital, providing stable funding for company growth [6][7]. - Companies must balance shareholder returns with maintaining a robust capital structure to avoid excessive cash flow pressure while optimizing financial health [7].