Listed companies' stock buyback to shore up market confidence

BEIJING - More listed companies have decided to buy back shares to boost investors' confidence this year, Securities Daily reported Thursday.

As of April 14, a total of 241 listed companies on the A-share market have implemented stock buyback plans this year and 24 companies have announced plans to repurchase stocks, according to the paper.

Through repurchasing stocks, listed companies send the signal that they have put on strong performance on the market and have confidence in future development, said the paper.

The buyback move can also help inject vitality into the market and restore market confidence, it said.

In addition, China's accelerated capital market reform to raise the quality of listed companies laid solid foundation for companies to repurchase stocks, according to the paper.

A stock buyback, also known as a share repurchase, occurs when a company buys back its shares from the marketplace with its accumulated cash. A stock buyback is a way for a company to reinvest in itself.