Hygon's RMB800 million ceiling equals under 0.2% of its RMB447.5 billion market value, so the plans offer staff stock and a confidence signal with little direct price support.
Five Shanghai-listed technology companies asked their boards on October 18 to approve share repurchases worth between RMB1.45 billion and RMB2.4 billion in total, at the end of a week in which technology shares led the market lower. Hygon Information, the Beijing chip designer, made the largest proposal at RMB500 million to RMB800 million. Sugon, Montage Technology, Shengyi Technology and GalaxyCore filed the others, according to Sina Finance, which carried the 21st Century Business Herald’s tally, and China Fund News.
In every case the repurchased shares are earmarked mainly for employee share ownership plans or equity incentives, and each company plans to buy on the open market through centralized bidding, the standard on-exchange method. The money would come from the companies’ own funds, with Shengyi also allowing raised capital. All five are proposals from a director or controlling shareholder to the board, so none has yet been approved, and the filings set floors and ceilings rather than firm purchase commitments.
The timing tracks the market. In the week of October 12 to 16, the Shanghai Composite fell 2.56%, the Shenzhen Component dropped 6.64% and the ChiNext index lost 8.9%, according to a Yicai weekly review republished by 21Jingji. The Sci-Tech Composite index fell 8.26%. The five proposers combined have a market value of about RMB1.07 trillion, Sina Finance reported, so even the top of the range is a small fraction of their equity.
One executive put forward both of the largest computing buybacks
Li Jun, who chairs both Hygon and Sugon, proposed two buybacks on the same day with a combined ceiling of RMB1.3 billion. Sugon’s plan, at RMB300 million to RMB500 million, shares the second-highest ceiling with Montage’s. A Securities Times report carried by 21Jingji said Li, also Sugon’s general manager, was elected to Hygon’s board and made its chairman on September 28, putting him at the head of two listed companies in the same computing supply chain.
The two companies are tied by ownership as well as management. Hygon’s planned share-swap takeover of Sugon, valued at about RMB115.97 billion, was called off on December 9, 2025, with Hygon citing a changed market environment, Jiemian reported. Sugon then held about 27.96% of Hygon, making it the largest shareholder. Li personally holds 40.3169 million Sugon shares, or 2.76% of its capital, and sold 1.8192 million shares in June, according to the Securities Times report. He said he has no plan to buy or sell during the buyback period.
The other three proposals came from different kinds of insiders. Shengyi chairman Chen Renxi proposed RMB200 million to RMB300 million. GalaxyCore’s controlling shareholder, chairman and chief executive Zhao Lixin proposed RMB150 million to RMB300 million, with part of the shares held to support the company’s value and intended for later sale. At Montage, the RMB300 million to RMB500 million proposal came from Yuhua Cheng, an independent director who chairs the board’s pay committee, according to the Securities Times report; Sina Finance added that he holds no Montage shares.
Price falls differ sharply across the five companies
The selloff hit the computing names hardest. Hygon closed at RMB192.54 on October 16, about 50% below its July high for the year, for a market value of RMB447.5 billion, according to Sina Finance. Sugon closed at RMB70.48, more than 40% below its July high, and GalaxyCore at RMB11.97, down more than 54% from its peak. Shengyi and Montage, by contrast, were still up more than 61% and 43% for the year, at market values of RMB278.4 billion and RMB207.4 billion.
Caixin Global reported that on October 15 alone the Shanghai index fell 1.6% to 3,707.5, the ChiNext index dropped 2.9% and more than 92% of listed stocks declined, with only liquor and securities shares rising. Hygon’s fundamentals moved the other way: on October 15 it forecast net profit of RMB2.71 billion to RMB2.98 billion for the first nine months, up 38.16% to 51.93%, according to an announcement roundup on Stockstar.
Four of the five plans cap the purchase price at 150% of the average share price over the 30 trading days before the board vote, China Fund News reported. Hygon’s and Sugon’s repurchase windows run 12 months from board approval, which gives the companies wide latitude on when, and whether, to buy at the top of their ranges.
Board votes will show how much of the money is committed
The proposers at Hygon, Sugon and Montage have pledged to push for a board vote and to vote in favor, and Shengyi’s chairman has promised to put his plan to the board. Montage’s board is due to consider its plan on October 29, the Securities Times report said; the reports gave no dates for the other boards. Because the price caps are tied to the 30 trading days before each vote, the timing of those meetings will fix how much room the companies have to buy.
The five plans add to a wave already under way. About 1,850 companies had announced buyback plans in 2026 as of October 15, with a combined upper limit of about RMB350 billion, and about RMB134 billion had been executed, close to the roughly RMB139 billion completed in all of 2025, Beijing Daily reported, citing unnamed data. For Hygon, the first disclosure of shares actually bought after its board vote will show whether the chairman’s RMB800 million ceiling turns into purchases.