On October 21, a representative from the Bank of China Guangdong Branch shared insights about their recent efforts to connect with over 200 listed companies in the province. The aim is to understand these companies’ funding needs regarding stock repurchases and share buybacks. Preliminary cooperation agreements have already been reached with several businesses, with loan commitments issued to support various sectors, including modern agriculture, high-end equipment, and biomedicine.
On October 18, the People’s Bank of China, in collaboration with the financial regulatory authority and the China Securities Regulatory Commission, announced a notification to establish a stock repurchase and increase shareholding relending program. This initiative is designed to encourage financial institutions to provide loans to qualified publicly listed companies and their major shareholders to facilitate stock buybacks.
In the initial round of cooperation announcements from the Shanghai and Shenzhen Stock Exchanges on October 20, leading player in the Guangdong aquaculture sector, Wen’s Foodstuffs Group, revealed it received a loan commitment letter from the Bank of China, promising a loan of up to 1 billion RMB for the purpose of repurchasing its shares.
The Bank of China Guangdong Branch places great emphasis on supporting its listed company clients by providing a comprehensive suite of financial services. These services encompass market capitalization management, advice on stock incentive plans, stock fund custody, merger consulting, and merger loans – effectively offering a “one-stop” financial support solution aimed at optimizing capital structure and enhancing long-term value for these companies.
Looking ahead, the Bank of China Guangdong Branch is committed to implementing regulatory policies and requirements rigorously. By reinforcing risk control measures, they aim to ensure that the stock repurchase and increase shareholding loan business operates within compliance. They are dedicated to supporting the stability of the capital market and helping listed companies grow and strengthen, continuously injecting robust financial momentum into high-quality economic and social development.
