The CSRC has proposed adjustments to share buybacks aimed at protecting company value and shareholder rights. It would add a price trigger — shares trading below IPO price — as a condition for conducting stabilization buybacks, exempt such buybacks from the six‑month post‑listing restriction and remove the ban on submitting buyback orders during opening and closing call auctions. Companies listed within 36 months would be required to rigorously implement any listing undertakings on price stabili

2026-11-02

The CSRC has proposed adjustments to share buybacks aimed at protecting company value and shareholder rights. It would add a price trigger — shares trading below IPO price — as a condition for conducting stabilization buybacks, exempt such buybacks from the six‑month post‑listing restriction and remove the ban on submitting buyback orders during opening and closing call auctions. Companies listed within 36 months would be required to rigorously implement any listing undertakings on price stabilization if those triggers are met. Firms with excess offering proceeds would be required to carry out buybacks promptly when triggers occur. Issuers must earmark a portion of their annual cash dividend plan for a dedicated buyback fund; those with excess proceeds must allocate a portion of that excess into the fund for use in repurchases and cancellations; proceeds from selling stabilization‑buyback shares via centralized trading must be returned to the buyback fund.