Buybacks Become Too Big To Ignore

Key News

Asian equities were higher on light volumes as investors kept an eye on the Middle East.

Ten state-owned-enterprises (SOEs) announced new or increases to their buybacks, adding to the forty companies who announced similar plans in September. Several buyback indices have been announced, with Mainland ETFs likely to be launched in the not-so-distant future. Last week, we had China’s sovereign wealth fund buy four high-yielding bank stocks, with more purchases coming. Stock stamp duties have been eliminated, buybacks encouraged, and stock sales restricted, along with incremental stimulus and rate cuts.