Over 20 Chinese firms buyback shares as Beijing seeks to stabilise market

As Beijing intensifies its efforts to stabilise the stock market, more than 30 Chinese publicly traded companies have recently revealed plans for share buybacks and purchases. The move comes in the wake of a series of measures introduced by the Chinese government to curb the declines in the stock market, which recently reached its lowest point since 2019. 

To bolster market confidence and support share prices, over 20 listed firms, including Hainan Mining Co, Vatti Corp, and Zhejiang Sanmei Chemical, have announced share buyback initiatives or proposals.

Furthermore, companies like CRRC Corp and Wuxi Lead Intelligent Equipment have disclosed intentions by their major shareholders to purchase shares. 

E Fund Management, a prominent mutual fund house, has committed to investing 200 million yuan (approximately $27.34 million) in its own product, the E Fund CSI 300 ETF, while also reducing fees on several of its exchange-traded products. In parallel, the state fund Central Huijin initiated ETF purchases last week to provide support to the market, and it has subsequently acquired over 17 billion yuan in ETFs, according to official estimates from Shanghai Securities News.

(With Reuters Inputs)