Recently, I had the opportunity to speak with representatives from Industrial Bank about their proactive approach in response to the national policy aimed at facilitating stock repurchase loans. They shared impressive updates about their efforts to support the capital market. As of now, they have successfully approved stock repurchase loans for 20 listed companies, with a total funding amount exceeding 4 billion yuan. The bank is actively engaging with over 120 leading companies across various sectors, continuously injecting momentum into the stable development of the capital market.
On October 18th, the People’s Bank of China, in collaboration with the National Financial Supervision Administration and the China Securities Regulatory Commission, released a notification regarding the establishment of stock repurchase loans. This initiative aims to encourage financial institutions to provide loans to qualifying listed companies and major shareholders, supporting their efforts in repurchasing and increasing their ownership of company shares. The initial funding amount allocated for this program is 300 billion yuan.
In line with this notification, Industrial Bank is diligently implementing regulatory requirements and has developed related management measures to effectively guide this business initiative. “We will continue to enhance our lending efforts, ensuring strict supervision and management of loan disbursement,” said a representative from the bank’s investment banking department. “Our goal is to guarantee that the funds are used solely for these intended purposes, encouraging listed companies to actively engage in repurchase and shareholder increase tools as part of their market value management strategies, thereby helping maintain a stable capital market.”
In recent years, Industrial Bank has been deepening its “commercial bank + investment bank” strategy, focusing on three key areas: specialized services, comprehensive support, and integrated operations. They have introduced comprehensive financial service plans for listed and prospective listed companies, offering a wide range of financial services, including debt financing, equity financing, merger transactions, asset revitalization, and wealth management. This approach aims to assist listed companies in optimizing their capital structure and enhancing long-term value. As of the end of September, the bank reported a substantial investment banking scale of 4.47 trillion yuan, with listed companies being one of their key focus areas.
