Share buybacks on mainland China’s biggest exchanges have surged to an all-time high this year, reflecting Beijing’s push for companies to provide shareholders with cash in a bid to revive a declining stock market. The surge in share repurchases, totaling Rmb235bn ($33bn) in mainland-listed shares so far in 2024, more than doubled last year’s total and far exceeded the previous record set in 2022. This financial trend comes as part of China’s largest economic stimulus since the Covid-19 pandemic, leading to a significant increase in the benchmark CSI 300 index by over 20% in the past month.
- According to Chinese financial data provider Wind, the rush of share repurchases is a key government strategy to revitalize the equity market.
- Jason Bedford, a China banking analyst, views this move as part of Beijing’s efforts to encourage an equity market rally.
Beijing recently announced substantial cuts to benchmark lending rates in a move to accelerate economic growth and meet its target of approximately 5% GDP growth by the year-end. The economic data releases scheduled for today include September inflation data from Hong Kong and South Korea’s producer price index.
Today’s Headlines:
1. India and China have made progress in resolving patrolling arrangements along their disputed border, signaling a potential decrease in tensions between the two nations after deadly clashes in 2020.
2. South Korea urges Russia to halt the deployment of North Korean troops in Ukraine, amid accusations of North Korean involvement in the conflict.
3. In anticipation of a retaliatory attack from Israel, Iran’s currency and stocks have plummeted, causing widespread anxiety among Iranians.
4. Disney appoints former Morgan Stanley boss James Gorman as chair and sets a timeline for the appointment of a new chief executive in “early 2026”.
5. Kamala Harris surpasses Donald Trump in fundraising, accumulating nearly $1bn in the last three months for the US presidential election.
Inderjeet Singh Gosal, a proponent of an independent Sikh homeland in India’s Punjab region, is resolute in his cause despite risks and tensions arising from his activism following the assassination of his predecessor. The political scene remains contentious between Ottawa and New Delhi due to the fallout from the violent incidents related to the Sikh separatist movement.
In this whirlwind of global news and economic fluctuations, it is important to stay informed and engaged with the ongoing developments shaping our world. From record-breaking share buybacks in China to geopolitical tensions and shifting political landscapes, the stage is set for a dynamic and complex future. Stay tuned for more updates and insights into the ever-evolving global landscape.
