2 1 Shi Ji Jing Ji Bao Dao·2025-10-24 23:25Core Insights - The People's Bank of China and multiple departments issued a notification regarding the establishment of stock repurchase and increase loans, which has been in effect for one year as of October 18, 2024 [1] - A total of 712 listed companies have disclosed 754 repurchase or increase loan plans, with a cumulative loan amount of 152.48 billion yuan [1][5] - The policy aims to stabilize the capital market and enhance investor confidence by providing low-cost, dedicated credit support for stock repurchase and increase [4][6] Summary by Sections Policy Implementation - The policy allows 21 national financial institutions to provide loans specifically for stock repurchase and increase, with a total re-loan quota of 300 billion yuan at an interest rate of 1.75% [4] - The maximum loan term was extended from 1 year to 3 years, and the self-funding ratio was reduced from 30% to 10% to improve accessibility [5] Market Participation - As of October 18, 2025, Industrial and Commercial Bank of China had the highest number of loan implementations, totaling 147 loans amounting to 35.69 billion yuan [2] - There is a demand for expanding the participant base to include more local banks to better meet market needs [2][3] Risk Management - Commercial banks face credit and market risks when engaging in this business, necessitating robust risk control measures [3] - The policy requires strict adherence to fund usage, ensuring that funds are used solely for the intended purpose [4] Market Impact - The tool has effectively played a counter-cyclical role during market fluctuations, helping to stabilize A-share market volatility [6][7] - As of October 24, 2024, the three major A-share indices showed significant annual increases, indicating positive market sentiment [6] Future Considerations - The long-term effectiveness and normalization of the operation mechanism still require further development [8][9] - Suggestions include expanding the support scope, simplifying approval processes, and enhancing policy sustainability to ensure broader market benefits [9]