The Paper｜SSE Records 78 Announcements of Shareholding Increase and Share Repurchase Through Special Loans Totaling RMB 16 Billion

The People's Bank of China, together with the National Financial Regulatory Administration and the China Securities Regulatory Commission, issued the Notice on Establishing a Central Bank Lending Facility for Share Buybacks and Shareholding Increases, starting to grant RMB 300 billion loans for share repurchase and shareholding increase. Against this background, substantial progress has been made in loan application by companies listed on the SSE. As of November 16, 78 announcements were disclosed on the SSE to use special loans for shareholding increase and share buybacks, with a total loan amount of RMB 16.274 billion, including 53 share repurchase announcements with a total loan amount of RMB 7.869 billion; 25 shareholding increase announcements with a total loan amount of RMB 8.405 billion.

Reporters from The Paper noticed that after the implementation of this new policy, many industry leaders took the lead in response and showed willingness in this business, believing that it would help promote listed companies and shareholders' willingness to increase their holdings or buy back shares, making it easier to carry out market value management. Such companies include Cosco Shipping Holdings Co., Ltd. (601919), a shipping leader; Jiangsu Zhongtian Technology Co.,Ltd. (600522), a communication leader; Gigadevice Semiconductor Inc. (603986), a semiconductor leader; and Hundsun Technologies Inc. (600570), a software leader.

With the help of the new lending facility, several private enterprises and their shareholders on the SSE have also issued plans for shareholding increase and share repurchases to boost investor confidence, including Sailun Group Co.,Ltd. (601058), Ningbo Peacebird Fashion Co.,Ltd. (603877), Ningbo Joyson Electronic Corp. (600699), and Tonghua Dongbao Pharmaceutical Co.,Ltd. (600867).

From The Paper on November 17, 2024

The above information is provided for reference purposes only and does not constitute investment advice.