After the central bank officially issued the document "Establishing Stock Buyback, Shareholding, and Additional Loan Facilities", the market response was enthusiastic. In the first weekend alone, on the evening of October 20th, the first batch of 23 listed companies responded quickly and disclosed announcements related to share buyback, shareholding, and additional loan facilities. According to reporters from Caixin, the cumulative upper limit of the specialized loan amounts disclosed by the above-mentioned companies has exceeded hundreds of billions of yuan.

Yesterday, the first batch of listed companies attempting share buyback, shareholding, and additional loans covered a wide range of sectors, including the main board, STAR Market, and Growth Enterprise Market (GEM); in terms of ownership structure, they include central state-owned enterprises, local state-owned enterprises, and private enterprises. Among central state-owned enterprises, both China Merchants Group and cosco shipping specialized carriers have multiple companies involved. Participating private enterprises are represented by industries such as aquaculture, photovoltaics, and chips, among which$Muyuan Foods (002714.SZ)$currently ranks first in the scale of specialized loans.

"China Merchants Series" takes the lead and is expected to generate a demonstration effect.

Among the first batch of A-share companies conducting share buyback, shareholding, and additional loans, central state-owned enterprises have performed prominently, especially with China Merchants Group companies taking the lead in action, among which $China Merchants Shekou Industrial Zone Holdings (001979.SZ)$ Announcement, the company signed a "Cooperation Agreement" with CM Bank Shenzhen Branch and obtained the "Loan Commitment Letter" issued by it. CM bank Shenzhen Branch intends to provide a loan amount of up to 0.702 billion yuan for the company's share buyback project, with a loan term of 12 months. The loan interest rate should not exceed 2.25% and should not exceed the market rate.

Yesterday, CM Bureau also announced that $China Merchants Shekou Industrial Zone Holdings (001979.SZ)$Please use your Futubull account to access the feature.$China Merchants Port Group (001872.SZ)$ signed a "Cooperation Agreement" with $CM BANK (03968.HK)$ Shenzhen Branch, respectively obtaining loan quotas for the share buyback projects of up to 0.443 billion yuan and up to 0.389 billion yuan.

On October 14, including the above three companies, there are $China Merchants Expressway Network & Technology Holdings (001965.SZ)$Please use your Futubull account to access the feature.$SINOTRANS (00598.HK)$Please use your Futubull account to access the feature.$LIAONING PORT (02880.HK)$Please use your Futubull account to access the feature.$Nanjing Tanker Corporation (601975.SH)$Please use your Futubull account to access the feature.$China Merchants Property Operation & Service (001914.SZ)$ Among the 8 listed companies under the "China Merchants Group", a total amount of nearly 5 billion yuan has been collectively announced for share buyback or shareholding plans.

In addition, $SINOTRANS (00598.HK)$ Also under the China Merchants Group, the company announced tonight that the Beijing branch of CM Bank plans to provide financing support to its controlling shareholder Sinotrans Limited, with a loan amount not exceeding 0.3 billion yuan. Sinotrans Limited plans to increase its shareholding in the company, with a total amount ranging from 0.25 billion to -0.5 billion yuan.

According to Shenwan Hongyuan analysis, the collective share buyback/shareholding plans of the 8 listed companies under the "China Merchants Group" are expected to have a demonstration effect on other central enterprises, potentially sparking a new round of buybacks and shareholdings led by central enterprises.

Caixin reporter noted that apart from the "China Merchants Group", the "CETC Group" is also collectively increasing shareholding and share buyback, with a disclosed total amount cap exceeding 3 billion yuan.

On Friday evening, five listed companies belonging to five Chinese electronic technology groups, including $Hangzhou Hikvision Digital Technology (002415.SZ)$Please use your Futubull account to access the feature.$Hangzhou EZVIZ Network (688475.SH)$Please use your Futubull account to access the feature.$Guobo Electronics (688375.SH)$Please use your Futubull account to access the feature.$Taiji Computer Corporation (002368.SZ)$Please use your Futubull account to access the feature.$CETC Cyberspace Security Technology (002268.SZ)$ Simultaneously disclosed the announcement of shareholding and share buyback. Last night, there were more$CETC Chips Technology Inc. (600877.SH)$,$CETC Digital Technology (600850.SH)$And two subsidiaries of the two CETC groups joined the ranks.

Participating in industries such as aquaculture, photovoltaics, and chips with both shareholding and share buyback.

In terms of shareholding loans, take action. $SINOPEC CORP (00386.HK)$ Taking the lead. According to the announcement, $China Petroleum & Chemical Corporation (600028.SH)$ the controlling shareholder China Petroleum & Chemical Corporation (Sinopec Group) signed a credit agreement with Bank of China, obtaining a credit line of 0.7 billion yuan, specifically for the current shareholding and future new round of shareholding plans.

Of note, in the first batch of new policy implementation cases yesterday, Sinopec Corp was the only company that not only increased its shareholding, but also participated in share buybacks. Sinopec Corp also obtained a credit line of up to 0.9 billion yuan from Bank of China, specifically for share buybacks in the A-share market.

In addition to Sinopec Corp, many listed companies have adjusted the sources of funds for share buybacks or shareholdings after receiving special loan support from financial institutions.

Such as$Shenzhen VMAX New Energy (688612.SH)$Announcement: We have reached a cooperation intention with China Merchants Bank Shenzhen Branch. The source of funds for the previously proposed buyback plan of 50 million yuan to -0.1 billion yuan has been adjusted from 'Company oversubscribed funds' to 'Self-owned funds and special loan funds'.

From the perspective of industry distribution, the shipping port sector has become a major focus for buyback, stake increase, and refinancing. Cosco Shipping Group, a maritime 'giant' like China Merchants Group, saw 4 listed companies under it announce plans for increased holdings or share buybacks:

$COSCO SHIP HOLD (01919.HK)$Please use your Futubull account to access the feature.$COSCO SHIP DEV (02866.HK)$ Plan to implement share buybacks and cancellation, with the expected repurchase amounts ranging from 1 billion yuan to -2 billion yuan, and 0.1436 billion yuan to -0.2872 billion yuan, respectively.$COSCO SHIP ENGY (01138.HK)$,$Cosco Shipping Specialized Carriers (600428.SH)$The controlling shareholder will increase its holdings, with an expected increase of 0.679 billion yuan to -1.358 billion yuan, and 0.144 billion yuan to -0.288 billion yuan respectively. Bank of China Shanghai Branch issued a "Loan Commitment Letter" to cosco shipping group and related listed companies, providing special loan support for this share buyback.

While the participating private enterprises represent industries such as aquaculture, photovoltaics, and chips. As of the time of publication, Muyuan Foods has received the largest single special loan.$China CITIC Bank Corporation (601998.SH)$The Nanyang branch will provide 2.-4 billion yuan in loan funds to Muyuan Foods for the special purpose of repurchasing company shares. Previously, the company planned to repurchase a total amount of 3 billion to 4 billion yuan of company shares, all of which will be used for employee stock ownership plans or stock-based incentive plans.

Another leading company in aquaculture $Wens Foodstuff Group (300498.SZ)$ Announcement, respectively from China.$ABC (01288.HK)$Obtained loans not exceeding 1 billion yuan, committed by Bank of China, not exceeding 1 billion yuan. Previously, the company planned to repurchase a total amount of 0.9 billion to -1.8 billion yuan of company's stocks. Among them, the part promised by Bank of China will be subject to regulatory requirements at the time of disbursement.

The low interest rate on further loans is helpful to further activate the market.

According to a document from the central bank on the 18th, a total of 21 national financial institutions, according to policy provisions, have been approved to provide loans to support listed companies' share buybacks and increases in holdings. After these 21 financial institutions have made the loans, they can apply for further loans from the People's Bank of China. For qualifying loans, the People's Bank of China will provide financial institutions with further loans of 100% of the loan principal. The initial amount of further loans is 300 billion yuan, with an annual interest rate of 1.75% and a term of 1 year, extendable depending on the situation.

He Jiyong, President of the Palm Research Institute, told Caixin reporters that the central bank's introduction of policies on repurchase, increase in holdings, and further loans will encourage listed companies and major shareholders to increase their repurchases and holdings of shares. This will directly stimulate the rise of the stock market, as repurchasing and increasing holdings usually indicate optimism about the company's future prospects, while also easing market supply pressures, helping increase market stability. This move will also bring more liquidity to the market, as financial institutions can obtain low-cost support for further loans, thereby increasing investments in the capital markets.

In addition, looking at the first batch of banks participating in repurchase and increase in holdings loans, a total of 6 national banks are involved, including the four major state-owned banks (Industrial, Agricultural, Commercial, and Construction), as well as China Merchants Bank, China Citic Bank, and other joint-stock banks.

According to the central bank document, the aforementioned 21 financial institutions make independent decisions on whether to provide loans, reasonably determine loan conditions, bear their own risks, and the loan interest rate should not exceed 2.25% in principle.

Most of the listed companies disclosed yesterday that the annualized interest rate of the repurchase and increase stake loans obtained was 2.25%.

Some market participants told Caixin reporters that the interest rate for repurchase and increase stake refinancing is significantly lower than the market rate, making it possible to reduce stock prices and dividend payments through repurchasing and increasing stake in stocks, thereby effectively increasing the wealth of shareholders. This is obviously bullish for listed companies and major shareholders. However, if banks can flexibly use this tool and actively support listed companies with good governance structures and promising prospects to repurchase shares and increase shareholder stakes, it will be beneficial to the entire group of capital markets.

Editor/Rocky