More than 50 A-share listed companies disclosed bank loan commitment letters for share buybacks or purchases in the roughly 10 days after a policy change on November 4, according to Wind data cited in a November 14, 2026 report. That compares with more than 30 companies in all of September and more than 40 in October. The disclosures are loan commitments, not evidence that every company has drawn the funds.
On November 4, the People’s Bank of China cut the interest rate on its relending facility for share buybacks and share purchases by 0.25 percentage points to 1% and said it would provide banks with sufficient relending capacity.
Among the disclosed commitments, Luoyang Molybdenum said China Merchants Bank’s Shanghai branch offered up to 1.8 billion yuan specifically to repurchase its A shares. Zhongwei New Materials said its controlling shareholder received a commitment from China CITIC Bank’s Changsha branch for up to 900 million yuan, with a term of no more than 36 months, to increase its A-share holding. Songfa Ceramics disclosed a commitment of up to 900 million yuan from Industrial Bank’s Dalian branch for a share buyback.
The report said more than 40 of the companies had year-on-year revenue growth in the first three quarters of 2026, while most reported growth in net profit attributable to shareholders. It also said more than half had a cash ratio above 0.5 at the end of the third quarter.
From November 4 to the report’s publication, the Shanghai Composite rose 0.73%, the Shenzhen Component 0.84% and the ChiNext Index 1.44%. The report said most companies that had recently disclosed related loan commitments outperformed the broader market over that period. Those concurrent share-price gains do not, on their own, establish that the policy caused them.
Yintai Securities strategist Chen Jianhua told Securities Times that a company’s decision to use such a loan depends on factors including its valuation, cash flow, intended use of repurchased shares and borrowing costs.
