China’s largest insurance company is planning to buy back up to Rmb 110 billion ($15.8 billion) of company stock, Caixin reports, as hundreds of mainland-listed firms seek to shore up share prices amid an ongoing rout.
Ping An Insurance said late last week that it has approved the purchase of 10% of the company’s outstanding shares, listed either in Shanghai or Hong Kong. If the move goes forward, this would be one of the largest share buy-backs in Chinese stock market history.
The company said in a filing that the decision was made “to actively respond to the decision to amend company law and the policy direction of the regulatory authorities, to stabilise the capital market, and to promote the maximisation of shareholders’ value.”
Last week the State Council cut restrictions on listed companies’ share buy-backs, which are a popular tool during restructurings, mergers or attempts to stabilise share prices.
According to Caixin, more than 756 companies had bought back stock or planned to do so as of October 12. The total value of the purchases completed so far this year exceeds that of the last three years combined.