Appliance-Maker Gree’s Planned Share Buyback Could Set Record

What’s new: Chinese household appliance giant Gree Electric Appliances Inc. of Zhuhai (000651.SZ) plans to buy back shares worth between 7.5 billion yuan ($1.17 billion) and 15 billion yuan, according to a Thursday company filing (link in Chinese).

The repurchased shares will be used for employee incentive programs, the filing said.

The context: Gree’s buyback scheme could be the largest in the history of the Chinese mainland A-share market, surpassing that of appliance rival Midea Group Co. Ltd. (000333.SZ) which completed a buyback (link in Chinese) of nearly 100 million shares worth 8.7 billion yuan in March.

This is not Gree’s first share buyback in recent years, as this move has become quite common in the appliance industry. Besides Midea and Gree, Haier Smart Home Co. Ltd. (600690.SH) has also implemented such a program. Some analysts said listed companies’ reason for these buybacks is to maintain their market capitalization.

Related: Appliance Giant Gree’s Business Rebounds in First Quarter

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com)

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