BEIJING, July 21 (Xinhua) -- Several Chinese state-owned 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 220.86 million U.S. dollars) and 3 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 percent of its total issued shares, at a total cost of 415.39 million yuan. Separately, between July 1 and July 20, it repurchased over 25 million H-shares, equivalent to 0.125 percent of its total issued shares.
China Petroleum and Chemical Corporation said that since launching its A-share buyback on June 18, it had repurchased about 77.9 million A-shares by July 17, accounting for 0.06 percent 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.
The China Securities Regulatory Commission is set to hold symposiums in the coming days with representatives from securities firms, fund managers and listed companies. The meetings aim to gather feedback and proposals from market participants, which will serve as direct input for future policy decisions. ■
