Several companies in Shanghai Stock Exchange received support from stock buybacks and reloans
Since the establishment of the repurchase, increase, and relending mechanism nearly a month ago, an increasing number of listed companies and major shareholders have received related loan support. The latest statistics from the Shanghai Stock Exchange show that as of the end of the month, a total of 100 announcements utilizing these loans for repurchase and increase have been disclosed in the Shanghai market, including 80 repurchase announcements with a total loan amount of 1.5 billion yuan, and 20 increase announcements with a total loan amount of 1 billion yuan.
In support of the stable development of the capital market, on a specified date, the People's Bank of China, together with the National Financial Regulatory Authority and the China Securities Regulatory Commission, issued a notice to officially establish a stock repurchase and增持再贷款 (repurchase and increase re-lending facility). This initiative aims to incentivize and guide financial institutions to provide loans to listed companies and their major shareholders that meet the criteria, supporting them in repurchasing and increasing their holdings of listed company stocks.
Statistics from the Shanghai Stock Exchange show that after the establishment of the stock buyback, share增持, and re-lending policies, many industry leaders have responded first. COSCO SHIPPING Holdings issued a notice on the day of the month, disclosing plans to repurchase 10 million to 100 million shares of the company, with an expected repurchase amount of 1 billion to 10 billion yuan. The Shanghai Branch of Bank of China agreed to provide up to 1 billion yuan in special loan support for the company's share repurchase.
In addition, several Shanghai-based private enterprises have actively announced share buyback and增持 plans. Taking Tonghua Dongbao as an example, after the company disclosed on a certain date that its controlling shareholder, Dongbao Group, intended to增持 its shares, on another date, Tonghua Dongbao issued a notice regarding the commitment letter for special loans obtained by the controlling shareholder for share增持, revealing that the Agricultural Bank of China, Jilin Branch, would provide financing support for Dongbao Group's增持 of the company's shares, with a loan quota of 1 billion yuan, specifically used for增持 through centralized竞价 trading.