Originally reported November 14, 2026.
More than 50 A-share listed companies disclosed bank loan commitment letters for share buybacks or stake increases in the roughly 10 days after China’s central bank expanded its relending program, according to Wind data cited in the original report. That compares with more than 30 companies in all of September and more than 40 in October. A commitment letter does not, by itself, establish that a loan has been drawn.
On November 4, 2026, the People’s Bank of China cut the relending rate for share buybacks and stake increases by 0.25 percentage points to 1% and said it would provide banks with sufficient relending capacity. The 1% figure is the rate for the central bank’s relending program, not a stated borrowing rate for listed companies.
Among the larger commitments, CMOC said China Merchants Bank’s Shanghai branch had offered up to 1.8 billion yuan specifically for repurchasing its A-shares. Zhongwei New Materials said its controlling shareholder, Zhongwei Holdings, had 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 holding of the company’s A-shares.
The report said more than 40 of the companies had year-on-year revenue growth in the first three quarters of 2026, while most recorded growth in net profit attributable to shareholders. More than half had a cash ratio above 0.5 at the end of the third quarter. These figures describe the companies that disclosed commitments, not all A-share companies.
From November 4 through the reporting period, the Shanghai Composite rose 0.73%, the Shenzhen Component 0.84% and the ChiNext index 1.44%. Many companies announcing loan-related plans outperformed those benchmarks, the report said. Those share-price moves do not establish that the policy caused the gains.
