(Yicai Global) Oct. 25 -- More listed companies have set out plans to buy back their own shares as Chinese mainland stock markets fall.

Seres Group said yesterday that it will repurchase CNY200 million to CNY400 million (USD27.4 million to USD54.7 million) shares to boost investor confidence and return the carmaker’s stock to a reasonable level. Seres [SHA: 601127] gained 1.8 percent today to close at CNY50.32 (USD6.88).

Hezong Science & Technology, a power equipment maker, and Huace Film & TV also came out with plans the same day to buy back shares worth between CNY20 million and CNY40 million (USD2.7 million and USD5.5 million) and CNY80 million and CNY120 million, respectively.

Buybacks are aimed at buoying a company’s stock price by removing some of its shares from the market. More than 500 firms listed in Shanghai and Shenzhen have repurchased over CNY100 billion (USD13.7 billion) of their own shares so far this year, compared with CNY96 billion (USD13.1 billion) last year.

Falling stock markets in China are the main reason for the larger number of buybacks this year. The Shanghai Composite Index sank 2 percent yesterday, falling below the 3,000 level for the second time this month. The benchmark has fallen just over 18 percent in 2022. The Shenzhen Component Index has stumbled 28 percent this year, while the ChiNext Index is down over 30 percent.

Regulatory support has also promoted buybacks. The China Securities Regulatory Commission said on Oct. 14 that firms whose stock drops 25 percent over 20 straight trading days could be permitted to buy back shares, compared with the previous 30 percent. And newly listed firms will be able to repurchase shares six months after listing, rather than after a year, it added.

Editor: Futura Costaglione