The China Securities Regulatory Commission will revise share buyback rules to mandate stabilization repurchases when stocks fall below their IPO prices and plans to ease margin financing requirements to release market liquidity. Under the proposed changes, companies listed for less than 36 months must fulfill share price stabilization pledges when triggered, while firms must allocate a portion of annual cash dividends and excess IPO proceeds into dedicated buyback funds. The regulator also dropped the six month listing minimum and removed restrictions on placing stabilization buyback orders during opening and closing call auctions.
The CSRC will work with stock exchanges to adjust margin financing ratios, collateral haircuts and maintenance margin requirements after Shanghai, Shenzhen and Beijing exchanges raised the margin requirement to 100% from 80% in January 2026. In addition, the regulator is urging the first batch of 18 active equity ETFs, which raised more than 350 billion yuan after launching on Oct 23, to accelerate portfolio building. During the first 10 months of 2026, 645 listed companies disclosed 237.7 billion yuan in buyback plans and 747 firms executed 134.5 billion yuan in repurchases.