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Only a few tech companies buy back more than 2% of shares amid repurchase wave; Linkage Software leads with highest planned ratio
Since July, more than 50 listed tech companies have announced share buyback plans, but most repurchase ratios are low, raising market doubts about the effectiveness of the move. According to company repurchase proposals, among 47 firms that disclosed specific figures, only 13 plan to buy back more than 1% of shares, with three in the 2% to 3% range, one above 3%, and the rest below 1%. Looking at the 39 tech companies that have already executed buybacks, only Linkage Software, ST Tianji, and Neusoft Corporation have repurchased more than 2%, at 2.56%, 2.36%, and 2.12% respectively. Meanwhile, Linkage Software, which has the highest planned ratio, intends to buy back shares equal to 3.11% of its total share capital. Experts note that a buyback ratio that is too low is unlikely to produce a meaningful financial effect and can easily be seen as a symbolic gesture. Only a high-percentage buyback that reaches a certain threshold can truly boost market confidence.