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PBOC, CSRC to Further Stabilize Capital Mkt with Policy Tools
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The People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) recently held a joint seminar on refinancing for stock repurchases and increases to further stabilize the capital market with policy tools. Xuan Changneng, deputy governor of the PBOC, and Wang Jianjun, vice chairman of the CSRC, attended the meeting and delivered speeches. Stock repurchases and increases are internationally recognized methods for managing the market value of listed companies. To support effective market value management of listed companies, the PBOC, CSRC, and the National Financial Regulatory Administration introduced a policy tool for refinancing for stock repurchases and increases in October 2024. In response to market concerns, they continuously optimized the policy tool, including reducing the self-funding ratio requirement to 10%, extending the maximum loan term to three years, and encouraging banks to issue credit loans to facilitate loan business for banks and enterprises, fully meeting the financing needs of listed companies for market value management. Financial institutions indicated that products for refinancing for stock repurchases and increases were widely welcomed by listed companies and major shareholders. Throughout 2024, listed companies disclosed share repurchase and increase plans amounting to nearly RMB300 billion. Since the implementation of the policy tool, over 300 listed companies have announced the use of bank loans for share repurchases and increases, with companies valued over RMB10 billion accounting for more than 40%. As its driving effect was gradually emerging, the policy tool played an important role in maintaining the stable operation of the capital market and boosting market confidence. AAStocks Financial News |
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