(Yicai) July 21 -- China's stock markets staged a strong rebound today after dozens of listed companies announced shareholder stake increases or share repurchase plans to lift market sentiment after two Chinese state-owned capital operation companies said that they had injected about CNY60 billion (USD8.9 billion) into market stabilization efforts.

The Shanghai Composite Index climbed 1.8 percent to end the day at 3,864.37 points, while the Shenzhen Component Index jumped 4.8 percent to 14,264.29 points. The Nasdaq-style ChiNext and Star Market indexes surged 7.1 percent and 8.8 percent, reaching 3,685.97 points and 2,060.48 points, respectively.

Yesterday, around 10 mainland-listed companies announced shareholder increase plans. Among them, China State Construction Engineering said its controlling shareholder, China State Construction Engineering Corporation, will invest between CNY500 million (USD73.9 million) and CNY1 billion to increase its stake in the company over the next 12 months.

While EVE Energy said its director and general manager, Liu Jianhua, will increase his holdings in the lithium battery maker by 100,000 shares within six months. Based on the Huizhou-based company's latest share price, the transaction could be worth more than CNY5 million (USD738,980).

And another 30 other firms also disclosed preliminary share buyback plans or proposals yesterday. Huayou Cobalt said it plans to spend between CNY600 million (USD88.6 million) and CNY1 billion repurchasing its own shares, while electronic components and materials supplier Three-Circle Group revealed a share buyback plan worth between CNY450 million and CNY900 million.

To boost the recently sluggish stock market, China Reform Holdings and China Chengtong Holdings Group, both under the State-Owned Assets Supervision and Administration Commission, announced on July 19 that they have invested approximately CNY50 billion (USD7.4 billion) and CNY10 billion, respectively, to increase their holdings of shares in state-owned listed companies.

This prompted several state-owned listed firms, including China Three Gorges Renewables Group and Aluminum Corporation of China, to announce shareholder stake increase plans yesterday morning.

Last week, the Shanghai Composite Index tumbled 5.8 percent, while the Shenzhen Component Index slumped 8.9 percent. The ChiNext and Star Market indexes plunged 10.8 percent and 17.5 percent respectively, marking their biggest weekly losses so far this year.

Editors: Dou Shicong, Kim Taylor