Chinese firms to boost buying their own shares on $1.6-trillion slump in its stock market
Shanghai — A wave of Chinese companies are promising to boost buying of their own shares as a $1.6-trillion slump in the nation’s stock market deepens. At least 101 firms said major shareholders and executives plan to increase their stakes or have bought shares, according to exchange filings on Wednesday and Thursday. Stock prices for these companies dropped by an average 7% on Tuesday when the Shanghai benchmark plunged to a two-year low amid concern about worsening trade tensions with the US. The move is reminiscent of steps taken by Chinese firms during 2015 when executives scrambled to shore up confidence as a stock bubble burst. Officials are weighing in: People’s Bank of China governor Yi Gang pledged after Tuesday’s tumble to use monetary policy comprehensively and maintain liquidity at an appropriate and stable level, while state media also tried to reassure investors. "The purchases are more of a symbolic move to boost share prices," said Guo Feng, Shanghai-based head of th...
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