Several Chinese state-owned energy giants and their listed subsidiaries on Tuesday released intensive announcements on plans for stock repurchases and shareholding increases to support the stock prices.
China Huaneng Group, one of the country’s largest state-owned power generation company, announced that it will continue to take an active role as the controlling shareholder based on its firm confidence in the long-term stable growth of the Chinese economy, and in fulfilling its mission as a “national priority.”
To protect investor interests, China Huaneng will promote the continuous improvement of its listed companies’ quality and enhance their medium-to-long-term investment value, actively conducting stock repurchases to achieve mutual benefits for all parties involved.
Inner Mongolia Huaneng, a company controlled by China Huaneng, announced that its controlling shareholder, Northern United Power Co., Ltd., plans to increase its holdings within the next three months using its own funds. The shareholder will increase holdings by 50 million – 100 million yuan, with a maximum price of 4.45 yuan per share.
China’s top three state-owned oil giants also announced stock buyback plans.
China National Petroleum Corporation (CNPC) announced that it plans to increase its holdings in China Petroleum & Natural Gas Corporation (PetroChina) A-shares and H-shares in the next 12 months, with an amount between 2.8 billion yuan (inclusive) and 5.6 billion yuan.
China Petroleum and Chemical Corporation (Sinopec) said that it would start a new 12-month repurchase plan, intending to increase its holdings of Sinopec A-shares and H-shares by no less than 2 billion yuan and no more than 3 billion yuan with its own funds and special loans for repurchasing stocks.
Sinopec also confirmed that its cash dividend payout ratio for 2024-2026 would be no less than 65%, maintaining a steady and consistent dividend policy to share its development results with investors.
China National Offshore Oil Corporation (CNOOC) announced that its controlling shareholder, CNOOC Group, plans to increase its holdings in the company’s A-shares and H-shares by no less than 2 billion yuan and no more than 4 billion yuan in the next 12 months, using its own funds.
CNOOC Services also said that its controlling shareholder, CNOOC Group, plans to increase its holdings in the company’s A-shares and H-shares by no less than 300 million yuan and no more than 500 million yuan within the next 12 months, based on its confidence in the company’s future development.
Stat-owned coal miners are also taking actions. CHN Energy Investment Group announced that the group will continue to support its listed subsidiaries in strengthening their core competitiveness, advancing asset integration, and fulfilling commitments regarding industry competition, to concentrate quality assets within the listed companies, enhancing their core competitiveness.
China Coal Energy (601898) announced that it received a notice from its controlling shareholder China Coal Energy Group, which plans to increase its holdings in the company’s A-shares within the next 12 months, and the total amount will be no less than 50 million yuan and no more than 80 million yuan, with the increased shares not exceeding 2% of the total share capital.
Meanwhile, China Coal Energy plans to increase its holdings in its subsidiary Shanghai Energy (600508), with a total amount no less than 30 million yuan and no more than 50 million yuan within 12 months.
Three Gorges Energy (600905) said that its controlling shareholder Three Gorges Group plans to increase its holdings in the company’s shares in the next 12 months through secondary market purchases, with the total amount to be no less than 1.5 billion yuan and no more than 3 billion yuan. The funds will come from Three Gorges Group’s own resources or financial institution loans for stock purchases.
China Energy Engineering Group said that the group will accelerate the implementation of share repurchase plans for its listed subsidiaries, effectively protecting investor interests and reinforcing the market’s confidence in these companies.
State Grid Corporation of China’s subsidiary Guodian Nanjing (600406) said that its chairman proposed using 500 million to 1 billion yuan for share buybacks, which will be used for future equity incentive plans. The repurchase price will not exceed 150% of the average trading price of the company’s shares in the 30 trading days prior to the repurchase board decision, and the repurchase period will last for 12 months, using the company’s own funds.
Late on April 7, China National Nuclear Corporation (CNNC) subsidiary China Nuclear Power (601985) announced that the company’s chairman proposed to repurchase shares worth 300 million to 500 million yuan with the company’s own resources or bank loans, and the repurchase period will last for 12 months from the shareholder meeting’s approval of the repurchase plan.
The stock repurchase announcements came as the State-owned Assets Supervision and Administration Commission (SASAC) said on Tuesday that it would fully support the efforts of central SOEs and their listed subsidiaries in increasing the intensity of stock buybacks and repurchases to safeguard shareholder rights, consolidate market confidence, enhance company value, and fully demonstrate the responsibility of state-owned enterprises.