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The Shanghai Stock Exchange at Pudong New Area in Shanghai, China. /Xinhua
The China Securities Regulatory Commission (CSRC) published draft rules on Friday which will make it easier for listed companies to buy back shares.
The rule changes aimed at supporting listed companies to buy back their shares and are to safeguard their investment value and protect the interest of smaller shareholders, the CSRC said in a statement on its website.
Buybacks can be triggered when a company's shares fall 25 percent within 20 consecutive trading days, according to draft rules soliciting public opinions. That compares with the current trigger of a 30 percent decline.
In addition, a company will be allowed to implement share buybacks six months after listing, according to the rules, compared with 12 months now.
The CSRC will also shorten the window where companies, and their senior executives, are barred from buying shares.
The existing bar for share buybacks is relatively high, and the rule changes are designed to facilitate such behaviors to meet the market and company needs, the CSRC said.
(With input from Reuters)
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Disinformation report hotline: 010-85061466