Caixin
Nov 26, 2018 08:36 PM
FINANCE

New Rules on Share Buybacks Raise Manipulation Concerns

Investors in Fuyang, Anhui province, closely watch the stock market in a securities business department on Nov. 16. Photo: VCG
Investors in Fuyang, Anhui province, closely watch the stock market in a securities business department on Nov. 16. Photo: VCG

* Draft rules follow an October revision to the Company Law that expanded the circumstances under which share buybacks are allowed

* Any listed company that wants to sell repurchased shares in the open market can launch a buyback program for the reason of attempting to stabilize share prices, according to the rules

(Beijing) — You can buy back your company’s shares to stabilize its stock price and then sell them back six months later.

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