More Chinese companies vow share buybacks as market sags further

China Mobile

16/10/2023 18:31

SHANGHAI, Oct 17 (Reuters) - Dozens of China-listed
companies announced plans on late Monday to buy back shares or
scrap plans of stock selling, following a slew of measures
authorities took to boost a flagging stock market.
     This follows more than a hundred Chinese companies
committing to buybacks or withdrawing share sales in August
after China imposed new rules as part of measures to shore up a
sinking stock market as the country's post-COVID-19 recovery
lost momentum. 
    Its blue-chip stock index  .CSI300 , however, is near
one-year lows as investor sentiment remained weak in recent
months despite stimulus policies to shore up confidence.
    More than a dozen Chinese companies, including China
Petroleum & Chemical Corp  600028.SS , China Railway
Construction Corp  601186.SS , China Mobile  600941.SS  said in
stock exchanges filings on late Monday that they had purchased
back their shares or plan to buy back shares in public markets.
    Meanwhile, more than 70 other companies in filings vowed
that their major shareholders would not sell shares in the
coming months, or withdrew plans to offload shares.
    Wanma Technology  300698.SZ  and GoodWe Technologies Co
 688390.SS  both said in their own statements that their
controlling shareholders would not sell stocks in the next six
months, based on confidence in their companies' future
development.
    It comes as China's state fund Central Huijin Investment
increased stakes in China's "Big Four" state banks last week,
fuelling hopes that the authorities would step in to rescue the
market.


 (Reporting by Jason Xue in Shanghai and Tom Westbrook in
Singapore
Editing by Marguerita Choy)
 ((Jason.Xue@thomsonreuters.com;))