Caixin
Sep 06, 2018 08:22 PM
FINANCE

As Market Sinks, China Plans to Boost Stock Buybacks

China’s securities regulator has proposed revisions to the Company Law to allow listed companies to buy back shares in an apparent move to bolster the stock market. Photo: VCG
China’s securities regulator has proposed revisions to the Company Law to allow listed companies to buy back shares in an apparent move to bolster the stock market. Photo: VCG

China is planning to make it easier for listed companies to buy back their shares, a potential boost to a struggling stock market that’s already slumped nearly 20% this year.

The securities regulator said on Thursday that revisions to the Company Law are being proposed that will broaden the circumstances under which companies can repurchase their shares, and simplify and speed up the process for obtaining shareholder approval for buybacks. The proposals will also give companies more flexibility in how they deal with the shares by allowing them to set up a treasury stock account to hold the equities, according to the statement posted on the China Securities Regulatory Commission (CSRC) website.

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