(Yicai Global) July 5 -- China's leading home appliance maker Midea Group intends to undertake the biggest regular share buyback ever seen on the country's A-share market buoyed by market optimism.

Midea will repurchase CNY4 billion (USD600 million) worth of shares priced at up to CNY50 each over the next 12 months, the Foshan-based firm said in a statement. The buyback could account for up to 1.2 percent of the total stocks issued.

The company's decision is driven by optimism towards the performance prospects and the high recognition of its valuation, Midea said. The firm will use its own capital for the repurchase as part of efforts to match the stock price with the company's valuation, defend the company's image, instill investor confidence, and safeguard their interests. The decision is also based on the company's recent performance in the secondary stock market, operating conditions, business development, financial condition and future profitability.

Shares in the company [SHE:000333] rose 2.6 percent in morning trading today to CNY46.28. The stock had plummeted 5.5 percent to close at CNY45.11 yesterday, representing a record low. The company's stock price has remained low since June 13, with a drop of more than 21 percent over fifteen trading days.

Midea is one of the top ten active stocks on the Shenzhen Stock Connect and ranks first for the amount of foreign capital trading with 446 million bought and 345 million sold. Net buying has reached 101 million, accounting for 3.7 percent of the total trading volume.

Editor: William Clegg