China Urged Buybacks at Star Board Companies as Market Tumbled
- Move comes amid concerns about Chinese economy, markets
- Buybacks proposed at about 30 firms on Shanghai’s Star Board
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Chinese authorities encouraged companies listed on the Shanghai science and technology board to buy back their shares this week, people familiar with the matter said, another sign that China is taking steps to shore up market confidence.
The Shanghai Stock Exchange communicated with the Star-board listed firms after receiving guidance from the China Securities Regulatory Commission, according to the people, who asked not to be identified discussing private information. Companies that have applied for equity refinancing were also encouraged to do buybacks, the people added.