SEVERAL Chinese stateowned enterprises (SOEs) directly administered by the central government have recently announced share buyback plans or disclosed that their major shareholders will increase their stakes, sending a strong signal of confidence in their valuations and the broader equity market.
China Three Gorges Renewables (Group) Co Ltd said its controlling shareholder, China Three Gorges Corporation, plans to increase its stake in the company over the next 12 months through open-market purchases. The total amount will range between 1.5 billion yuan (about US$220.86 million) and three billion yuan, funded by the shareholder’s own capital or self-raised funds.
Metallurgical Corporation of China Ltd said that as of Monday, it had repurchased over 146 million A-shares, representing about 0.71 per cent of its total issued shares, at a total cost of 415.39 million yuan. Separately, between 1 and 20 July, it repurchased over 25 million H-shares, equivalent to 0.125 per cent of its total issued shares.
China Petroleum and Chemical Corporation said that since launching its A-share buyback on 18 June, it had repurchased about 77.9 million A-shares by 17 July, accounting for 0.06 per cent of its total issued shares, at a total cost of 365.41 million yuan.
The moves by these SOEs come as regulators step up efforts to better reflect market sentiment and foster a stable, healthy capital market. — Xinhua