CCTV News: Recently, the People's Bank of China and the China Securities Regulatory Commission jointly held a symposium on stock repurchase, increasing holdings and re-lending to further play the role of policy tools in stabilizing the capital market.
Stock repurchase and increase holdings are internationally used methods of market value management of listed companies. In order to cooperate with the management of listed companies' market value, in October 2024, the People's Bank of China followed the principles of marketization and rule of law, and jointly with the China Securities Regulatory Commission and the State Administration for Financial Regulation, it established a policy tool for stock repurchase, increase and re-lending. In combination with market concerns, it continuously optimized the policy tool, reduced the proportion of its own funds to 10%, and extended the maximum loan period to 3 years. Banks were encouraged to issue credit loans, facilitated banks and enterprises to carry out loan business, and fully met the financing needs of listed companies' market value management.
Financial institutions said that stock repurchase and increase loan products are widely welcomed by listed companies and major shareholders. In 2024, listed companies disclosed nearly 300 billion yuan in repurchase and increase plans. Since the implementation of the policy tools, more than 300 listed companies have issued announcements on using bank loan repurchase and increase holdings, and companies with market value of more than 10 billion yuan account for more than 40%. The driving effect of policy tools has gradually emerged, playing an important role in maintaining the stable operation of the capital market and boosting market confidence. Listed companies that actively carry out market value management are high-quality enterprises with good operating benefits and management full confidence in their own business development. Stock repurchase and increase loans are expected to become a new business growth point. In the next step, we will give full play to the advantages of customers and outlets, and continuously improve comprehensive financial services for listed companies and major shareholders, so as to achieve the common development of banks and enterprises.
