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Chinese companies are spending record amount on buybacks. This is not a sign of confidence.
Chinese companies are jumping on the buyback bandwagon, but don’t take that as a vote of confidence.
Companies listed in Shenzhen and Shanghai have been buying back shares at a record pace, spending 24 billion yuan ($3.5 billion) so far in 2018—the most in a year and close to the total in the previous three years. Hong Kong-listed companies have spent $2.9 billion repurchasing their shares—including battered tech giant Tencent, which has bought back $10 million of its stock in recent days.