Brokerage houses are pressing ahead with share repurchase plans first announced between April and May, with logout updates on implementation. Since June, Cathay Haitong, Oriental Securities, and Guojin Securities have disclosed repurchase advancements, commonly citing confidence in the capital market’s long-term prospects and alignment with strategic planning as key motivations.
Key Players Report Substantial Repurchases
Cathay Haitong had repurchased 32.4884 million A-shares (0.1843% of total equity) via centralized bidding by May 31, spending 557 million yuan. Additionally, 782,900 restricted shares were repurchased and logout due to incentive recipients’ departures, involving 4.3369 million yuan.
Oriental Securities has bought back 25.6245 million A-shares (0.3016% of equity) for 240 million yuan, while Guojin Securities acquired 6.7511 million shares (0.1818% of equity) at a cost of 55.7338 million yuan as of May 31.
Motivations: Strategic Confidence and Shareholder Returns
Most brokerages link repurchases to long-term market confidence and strategic alignment. Oriental Securities aims to safeguard corporate value and shareholder rights and interests，while Cathay Haitong initiated repurchases on April 10 under Chairman Zhu Jian’s proposal to boost investor confidence. Zhongtai Securities’ April 29 plan, proposed by Chairman Wang Hong, targets registered capital reduction.
Market Reacts Positively to Repurchase Signals
Since June, A-shares have trended upward, with the Shanghai Composite, Shenzhen Component, and ChiNext rising 1.12%, 1.21%, and 2.21% month-to-date (as of June 10). The Shenwan secondary securities industry index gained 2.5%, outperforming the broader market, with 48 of 49 sector stocks up—CINDA Securities (+8%), Cathay Haitong (+7%), and Everbright Securities (+7%) leading the rally.
“Brokerages’ active repurchases send positive signals, boosting investor confidence. This aligns with regulators’ push to optimize capital structures, as seen in the new ‘National Nine Policies’ encouraging share cancellation after repurchase,” noted AVIC Securities. Firms like Cathay Haitong have also unveiled 2025 “Quality Enhancement and Return” action plans, outlining operational upgrades and enhanced shareholder returns.
Looking ahead, AVIC Securities expects improved investment appeal for brokerages as repurchases and dividend policies take effect, while Kaiyuan Securities forecasts continued earnings growth for brokerages in H1 2025 amid low bases and rising trading volumes. With sector valuations and institutional holdings at lows, policy support, and earnings momentum, brokerages remain a favored sector.
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