[In the near future, the China Securities Regulatory Commission plans to adjust and optimize the protective repurchase] On November 2, the head of the relevant department of the China Securities Regulatory Commission answered reporters’ questions on the recent work related to stabilizing the market and stabilizing expectations. Under the call and promotion of regulatory authorities, many listed companies have actively carried out share buybacks in recent years. What is the overall implementation status of buybacks by listed companies? What are the next steps to consider in terms of supporting share repurchases of listed companies and optimizing repurchase rules? Answer: Carrying out share repurchases is an important tool for listed companies to manage their market value. It is also an important way for listed companies to stabilize their stock prices and show and convey their development prospects and confidence. In December 2023, the China Securities Regulatory Commission revised the "Rules for Share Repurchases of Listed Companies" to improve the convenience of share repurchases and improve the normalized institutional arrangements for share repurchases of listed companies. The scale and quantity of repurchases are generally on the rise. From 2024 to the first 10 months of 2026, the enthusiasm of listed companies to repurchase shares has steadily increased. The cumulative amount of repurchase plans disclosed by the Shanghai and Shenzhen stock markets and the actual implementation amount have increased by 50% compared with the previous three years (2021-2023). In the first 10 months of this year, 645 listed companies in the Shanghai and Shenzhen stock exchanges disclosed 700 share repurchase plans worth 237.7 billion yuan, of which the repurchase and cancellation amount was 115 billion yuan, accounting for nearly 50%. 747 companies actually implemented repurchases of 134.5 billion yuan. The repurchase plan amount, actual repurchase amount, repurchase cancellation amount and proportion all hit record highs. In order to further improve the convenience for listed companies to carry out share repurchases and give full play to the market's inherent market stabilizing function, after extensive and in-depth research, the China Securities Regulatory Commission has recently planned to make the following adjustments and optimizations to the repurchase of shares necessary to safeguard the company's value and shareholder rights (referred to as protective repurchase). : First, the "break" of stock price has been added as one of the circumstances under which protective repurchases can be carried out. It is stipulated that protective repurchases do not apply to the restriction that "the company's stocks have been listed for six months", and the restriction that no declarations can be made during the opening and closing call auction stages of protective repurchases has been cancelled. The second is to require listed companies within 36 months of listing to strictly and conscientiously implement the stock price stabilization measures in their listing commitments when their stock prices reach a protective buyback situation. The third is to require listed companies with over-raised funds to implement buybacks in a timely manner when they encounter protective buybacks. The fourth is to require listed companies to include a certain proportion of funds in the annual cash dividend plan into a special repurchase fund, require listed companies with over-raised funds to include a certain proportion of over-raised funds into a special repurchase fund and use it exclusively for share repurchase and cancellation, and require listed companies to include the proceeds from selling protective repurchase shares through centralized bidding into a special repurchase fund. In the next step, we will promptly revise the "Share Repurchase Rules of Listed Companies" based on in-depth research and demonstration to enhance the binding force of protective repurchases. Before the rules are formally revised, the China Securities Regulatory Commission will increase coordination and cooperation with relevant parties to support, encourage and supervise qualified listed companies, especially important index component companies and leading technology stock companies, in accordance with the above requirements and their own actual conditions to actively implement share buybacks and continue to do a good job in market value management.