Since the second half of 2026, a number of listed securities firms have密集 launched or advanced share buybacks, with major shareholders increasing their stakes in tandem.

This round of buybacks is dominated by small and medium-sized securities firms, with the proportion of cancellation-style repurchases rising significantly and the initiating entities becoming more diverse.

The direct motivation is the mismatch between strong first-half performance and low sector valuations, prompting industrial capital to enter with its own funds to actively correct this; on the policy side, the new "Nine National Articles" encourage buyback cancellation, and market value management guidelines continue to guide, promoting the normalization of cancellation-style repurchases.

Cancellation-style repurchases permanently reduce total share capital, enhance earnings per share and return on net assets, and carry no subsequent selling pressure from treasury shares, driving securities firms' market value management from short-term stabilization to long-term shareholder returns, which is long-term positive for optimizing the sector's shareholder return system.

Since the second half of 2026, multiple listed securities firms have densely launched or advanced share buybacks.

This round of securities firm buybacks and stake increases exhibits the following characteristics: First, the participating entities are mainly small and medium-sized securities firms. Medium-sized institutions such as Guolian Minsheng, Changjiang Securities, Huaan Securities, Sinolink Securities, Hongta Securities, and Zhongtai Securities have密集 acted, while top-tier securities firms have been relatively limited in action. The logic is that buybacks directly consume net capital, and net capital is the regulatory bottom line for core businesses such as margin trading and proprietary trading. Small and medium-sized securities firms currently have limited willingness for business expansion and relatively ample net capital, meeting the conditions for implementation. Second, the proportion of cancellation-style repurchases has risen significantly. In the past, buybacks were mainly for market value maintenance and equity incentives. In this round, many companies have explicitly stated that shares will be used for cancellation and reduction of registered capital, and some companies have also agreed that repurchased shares not used within three years will be cancelled according to procedures. Third, the initiating entities are becoming more diverse. Proposals by controlling shareholders, initiation by chairmen, and simultaneous stake increases by major shareholders have formed a joint recognition of company valuations by major shareholders and management, creating synergy between buybacks and stake increases.

Why have securities firms recently密集 conducted buybacks or stake increases? The surface-level direct motivation is the mismatch between strong performance and low valuations. First-half performance was generally forecast to increase, yet sector valuations are at historical lows. Industrial capital entering with its own funds is an active correction of this mismatch; continuous policy guidance and tools such as relending for buybacks and stake increases have also provided low-cost funding support. The root cause lies in the dual resonance of institutions and interests. At the policy level, the new "Nine National Articles" for the first time wrote buyback cancellation into top-level design, explicitly encouraging listed companies to repurchase shares and cancel them according to law; since 2024, policies such as the CSRC's market value management guidelines have further encouraged cancellation-style repurchases, and repurchase rules have lowered thresholds and cancelled window periods, paving the way for them to move from occasional actions to normalization. At the shareholder return level, repurchasing and cancelling with own funds at low valuations is equivalent to recovering equity at low prices, which is more friendly to shareholders.

In this round of securities firm buybacks, many companies have explicitly used shares for cancellation and reduction of registered capital. Its impacts are mainly in the following three aspects: First, it permanently reduces total share capital, and under the premise of unchanged profits, enhances earnings per share and net assets per share, passively raising return on net assets—a genuine return of real money that benefits all shareholders. Second, cancelled shares permanently exit circulation, and there is no selling pressure from treasury shares sold later, which helps continuously support the valuation foundation. Third, it drives the securities industry's market value management approach from short-term stabilization and defense to long-term shareholder returns, aligning with the investor-oriented guidance.

However, it should also be viewed rationally. The improvement in indicators from cancellation-style repurchases is built on the basis of stable profits. If fundamentals lack support, it is difficult to form a sustained valuation floor solely through share reduction of limited scale.

Uncertainty of market price fluctuations: Capital market prices are influenced by many factors, including macroeconomic fluctuations, changes in the global economic situation, and fluctuations in investor sentiment, all of which may cause stock price changes or affect the valuations of institutions such as securities firms and insurance companies. The performance of the non-bank financial industry is greatly affected by market prices and trading volumes.

Uncertainty of corporate earnings forecasts: The earnings of the securities and insurance industries are affected by multiple factors. The report's forecasts for industry valuations and performance contain certain uncertainties. In addition, intensified competition within the industry may also lead to deviations in forecast results.

Technological更新 and iteration: The rapid development of emerging technologies requires financial institutions to continuously follow up and adapt to the pace of technological change. However, the accelerated pace of technological更新 and iteration also brings high R&D investment and talent training costs, which may increase the operating costs of securities firms and insurance companies. At the same time, the outbreak of technological innovation has certain uncertainties.

Securities Research Report Title: "Securities Firms Rush to Buy Back and Increase Stakes, Cancellation-Style Repurchases Enhance Shareholder Returns"

External Release Date: October 9, 2026

Report Publishing Institution: CITIC Construction Investment Securities Co., Ltd.

Report Analysts: Zhao Ran SAC No.: S1440518100009 SFC No.: BQQ828

Wu Mahanxu SAC No.: S1440522070001