HONG KONG (Reuters) - China is easing restrictions on share buy-backs by public companies under revisions to company law approved by the country’s top legislature, the National People’s Congress, on Friday, state news agency Xinhua reported.
Listed companies will be allowed to buy back their publicly traded shares for purposes such as issuing convertible bonds, or to defend corporate values and protect shareholders’ interests, it said.
Companies were previously banned from share repurchase in most circumstances. The revised law goes into effect immediately, Xinhua said.
China’s regulators are taking measures to rally market confidence.
Reporting by Meg Shen; editing by Andrew Roche