Caixin learned on October 24th (Reporter: Shi Sitong) that since the People's Bank of China officially launched the stock buyback and shareholding rediscount loan, major banks have taken swift actions to promote related businesses. Caixin reporters noted that recently, ping an bank, industrial bank, shanghai pudong development bank, and other joint-stock banks have continuously implemented share buyback and shareholding loan businesses, and announced the latest related developments.

Among them, ping an bank has contacted over 200 listed companies for loan intentions, shanghai pudong development bank has reached cooperation intentions with over 170 listed companies, and industrial bank is actively engaging with over 120 leading listed companies in various fields.

Industry experts believe that the swift implementation of the above-mentioned businesses by major banks is mainly in response to regulatory policies and an attempt to seize a first-mover advantage in the market to seek more performance growth in the new loan business field. In this regard, experts suggest that banks need to enhance risk management capabilities during the process by conducting comprehensive evaluations and inspections of the operational stability, financial position, etc., of the target companies.

Joint-stock banks are accelerating the implementation of stock buyback and shareholding loan services, with many banks such as ping an bank and shanghai pudong development bank announcing new progress intensively.

On October 24th, Caixin reporters learned that as of now, ping an bank has contacted over 200 listed companies nationwide for loan intentions, with over 50 companies having preliminarily reached loan cooperation intentions and entered the business process. The intended listed companies cover multiple industries including high-end manufacturing, biomedical, and transportation.

"Following the policy release, our bank promptly established a special agile team, optimized the approval process, and opened a green channel. All departments worked overtime to promote the establishment of related product systems, while branches across the country accelerated coordination with listed company clients, actively promoting cooperation." A spokesperson from ping an bank explained.

At the same time, industrial bank has already completed the approval for share buyback and shareholding loan businesses with 20 listed companies, with a total approved amount exceeding 4 billion yuan. Currently, the bank is actively engaged with over 120 leading listed companies in various fields.

According to an incomplete compilation by a reporter from Caixin, on the first working day after the policy was announced, Industrial and Commercial Bank of China, Bank of China, China Construction Bank, CM Bank, and many other banks successively announced the landing of the first batch of share buyback and shareholding reaffirmation loan business. Subsequently, Shanghai Pudong Development Bank, China Everbright Bank, Industrial Bank, Ping An Bank, and many other joint-stock banks also quickly followed up with the implementation and disclosure.

According to the disclosure of Shanghai Pudong Development Bank, the Ningbo Branch completed the approval work for 2 share buyback and shareholding reaffirmation loan business transactions on October 18, providing credit support of 0.1 billion yuan to two high-tech enterprises. Subsequently, branches in Nanjing, Xiamen, Guangzhou, and Hangzhou successively completed the approval of the first share buyback and shareholding reaffirmation loan business transactions.

As of yesterday, Shanghai Pudong Development Bank has completed multiple approvals for 'share buyback and shareholding reaffirmation loans' and reached cooperation intentions with over 170 listed companies, covering multiple industries such as integrated circuits, optical electronics, biomedical, transportation, and high-end manufacturing, while the loan interest rate generally does not exceed 2.25%.

On the other hand, on October 23, the listed company Beijing Lirr High Temperature Materials Co., Ltd. announced a collaboration with China Everbright Bank's Beijing Branch on share buyback and shareholding reaffirmation loans, marking the landing of China Everbright Bank's first batch of share buyback and shareholding reaffirmation loan business.

To boost new business growth points, banks need to enhance risk control capabilities and strengthen the evaluation of target companies.

In fact, since October 18, the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission issued the 'Notice on Matters Concerning the Establishment of Share Buyback and Shareholding Reaffirmation Loan,' introducing the policy tool of 'share buyback and shareholding reaffirmation loan.' Following this, major banks promptly implemented related businesses.

To this, Su Xiaorui, a senior researcher at Suxi Wisdom Research, told a reporter from Caixin that major banks actively followed up and quickly implemented share buyback and shareholding reaffirmation loan business, mainly in active response to regulatory policies. At the same time, banks are also trying to seize the market opportunity to seek more performance growth in the field of new loan businesses.

Su Xiaorui stated, 'The special re-loan for share buyback and reaffirmation' as a policy tool to support the stable development of the capital markets by the central bank can help listed companies with relevant needs to carry out effective market value management within a compliant framework. It also helps maintain the stable operation of the capital markets, which is a bullish factor for supporting listed companies' performance growth, boosting market confidence, and more.'

Furthermore, Wang Pengbo, chief analyst of Broadcom Financial Consultancy, also pointed out that share buyback and shareholding loan policies are undoubtedly a new business growth point for banks, bringing interest income to the banks. However, banks need to enhance risk management capabilities when conducting operations, conducting comprehensive evaluations and inspections of the operating stability, financial situation, and so on of the target companies. If there are problems with the operation or stock price of the listed companies, it may affect the recovery of the bank's loan principal.

As for the relevant listed companies, with the help of share buyback and refinancing, listed companies and their major shareholders can obtain low-cost special funds from banks for share buybacks and shareholdings, which is conducive to optimizing the company's capital structure, improving the company's financial stability, and at the same time, can improve the efficiency of equity capital utilization and enhance equity return on investment.