Multiple Automakers Launch Massive Share Buybacks Exceeding RMB 10 Billion

Since the first quarter of 2026, numerous automakers have intensively implemented share repurchase programs, involving both traditional automakers and new-energy vehicle (NEV) startups, spanning both the A-share and Hong Kong stock markets. According to publicly available data, the total scale of these repurchases has exceeded RMB 12 billion, with the majority being cancellation-type repurchases—meaning the repurchased shares are directly canceled to reduce registered capital. Geely Automobile has continuously repurchased shares on the Hong Kong Stock Exchange since the second half of 2025. As of early February 2026, it had cumulatively repurchased 67.431 million shares at a cost of HK$2.3 billion. On March 24, 2026, Li Auto announced a share repurchase program worth up to USD 1 billion (approximately RMB 6.9 billion), valid until March 2027. On March 30, 2026—the same day it released its 2025 annual report—Seres announced plans to use RMB 1–2 billion of its own funds to repurchase shares for capital reduction. In 2025, Seres reported revenue of RMB 165.05 billion and net profit of RMB 5.96 billion. Changan Automobile unveiled its first-ever share repurchase plan on February 4, 2026, proposing to allocate RMB 1–2 billion to repurchase both A-shares and B-shares for full cancellation—RMB 0.7–1.4 billion for A-shares and RMB 0.3–0.6 billion for B-shares. This marked Changan’s inaugural repurchase program and represented a rare instance in the A-share auto sector of simultaneous A+B share repurchases. On April 10, the company completed its initial repurchase, spending approximately RMB 33.1248 million at prices ranging from RMB 10.02 to RMB 10.21 per share, corresponding to a price-to-earnings (P/E) ratio of less than 10x at the time. Additionally, Great Wall Motor approved a restricted stock repurchase and cancellation plan at the end of March, while BYD had previously disclosed a repurchase plan valued between RMB 500 million and RMB 1 billion. These repurchase activities have generally taken place against a backdrop of solid fundamentals—and in many cases, record-high earnings—yet persistently subdued stock performance. Most companies have opted to launch large-scale repurchases at this juncture to enhance earnings per share (EPS) and book value per share through share count reduction, bolster market valuation support, and signal management’s view that their intrinsic value is currently undervalued by the market.