(Yicai Global) Oct. 17 -- Some 94 companies listed on the Chinese mainland have said that they have plans for share buybacks after the country’s securities regulator said it is mulling making it easier for listed companies to repurchase their own stock, the Securities Times reported today.

Just over half, or 49, of the 94 firms polled had already announced their plans, as of yesterday, while 14 of the 49 firms have already disclosed repurchase plans, the report said. Together, they plan to repurchase around CNY5.1 billion (USD708 million) worth of shares.

Share buybacks are often conducted by companies to shore up a sliding stock price and boost investor confidence. The main reasons given for conducting repurchases were “we are confident in the firm’s long-term development” and “the company’s stock price does not reflect the fundamentals,” the report said, citing the firms, major shareholders and senior executives.

Carmaker Great Wall Motor said it wants to buy back CNY1.8 billion (USD250 million) worth, while textile company Zhejiang China Light and Textile Industrial City Group wants to repurchase at least CNY410 million (USD57 million) worth, equivalent to 7.2 percent of the Shaoxing, eastern Zhejiang province-based firm’s market value.

Forty-five of the 94 firms disclosed shareholding increase plans. Senior executives and state-owned shareholders are the driving force behind the hikes. Sixty-six percent of shareholders of the 29 companies listed in Shanghai which said they would like to increase their stakes in the company are executives.

State-owned enterprises are also keen to increase their holdings. Shudao Investment Group, for instance, said it will buy another CNY400 million (USD55.5 million) worth of shares in its unit Sichuan Road and Bridge Group. It recently bought CNY577 million worth.

Companies whose stock loses 25 percent in value over 20 consecutive trading days could be permitted to buy back shares, as opposed to the previous 30 percent, according to the draft policy released by the China Securities Regulatory Commission on Oct. 14. And newly listed firms will be able to repurchase their own shares six months after listing, rather than the previous one year.

In the first three quarters, 144 companies in Shanghai proposed share repurchases amounting to as much as CNY30 billion (USD4.1 billion) and 226 companies in Shenzhen said they intended to buy back a maximum of CNY80 billion worth.

Editor: Kim Taylor