Jinwu Financial News | Bank stocks rose collectively. Bohai Bank (09668) rose 3.09%, China Construction Bank (00939) rose 1.84%, Bank of Communications (03328) rose 1.64%, Bank of China (03988), Agricultural Bank (01288), and Industrial and Commercial Bank (01398) followed suit.
According to the news, on October 18, the People's Bank of China, in conjunction with the General Financial Supervisory Authority and the China Securities Regulatory Commission, issued the “Notice Concerning Matters Relating to Establishing Stock Repurchase and Increase Refinancing”, which establishes stock repurchases and additional loans to encourage and guide financial institutions to provide loans to eligible listed companies and major shareholders to support them to repurchase and increase their holdings of listed companies' shares.
The initial reloan amount is 300 billion yuan, the annual interest rate is 1.75%, and the term is 1 year, which can be extended according to circumstances. The stock repurchase and increase holdings and reloan policy applies to listed companies with different forms of ownership. Twenty-one national financial institutions, including China Development Bank, policy banks, state-owned commercial banks, postal savings banks of China, and joint-stock commercial banks, issued loans to support the repurchase and increase of shares of listed companies in accordance with policy regulations.
