The scope of participating institutions in stock repurchase and loan business is expected to be expanded to include city commercial banks. Previously, this business was limited to 21 national financial institutions. According to the announcement of listed companies, Bank of Beijing and Bank of Shanghai have signed loan commitment letters with some listed companies regarding stock repurchase and increase in holdings loans. The reporter recently learned exclusively that in addition to Beijing Bank and Shanghai Bank, Ningbo Bank, Jiangsu Bank, and Nanjing Bank are also expected to obtain relevant qualifications for this loan business. The stock repurchase and increase in holdings loan business, as an important lever to broaden credit channels, enhance the stickiness of high-quality customers, and provide comprehensive financial services, is attracting banks to actively layout. According to Wind data, hundreds of listed companies have disclosed their loan progress since the policy was implemented one year ago. City commercial banks are expected to obtain loan qualifications. In April of this year, the senior management of Bank of Beijing revealed that the central bank has included Bank of Beijing as a support target for four structural monetary policy tools, including stock repurchase, increase in holdings, and refinancing. Now, it seems that new progress has been made in related matters. On October 16th, Zhijiang Biotechnology announced that it plans to repurchase the company's shares with funds of no less than 60 million yuan and no more than 120 million yuan, including the company's own funds and special loan funds for stock repurchase. The company stated that it has obtained a loan commitment letter issued by Bank of Beijing Shanghai Branch, and the specific loan matters will be subject to the loan contract signed by both parties. Not only Bank of Beijing, but in June of this year, Baoming Technology announced that the company had obtained a loan commitment letter issued by Shanghai Bank Shenzhen Branch, with a loan amount not exceeding 7 million yuan and a loan term not exceeding 36 months. The funds will be used specifically for repurchasing the stocks of listed companies. Baoming Technology stated that this repurchase special loan business complies with the requirements of the "Notice of the People's Bank of China, the State Administration of Financial Regulation, and the China Securities Regulatory Commission on the Establishment of Stock Repurchase and Shareholding Re lending" and other related matters, and conforms to the loan policies, standards, and procedures formulated by banks in accordance with relevant regulations. Conglin Technology also announced in June that the company had obtained a loan commitment letter issued by Shanghai Bank's Shinan Branch. The bank promised to provide a stock repurchase special loan of no more than 36 million yuan, with a loan term of no more than 3 years, and the funds will be used specifically for stock repurchase business. The commitment letter is valid for 12 months. Conglin Technology stated that the specific loan matters for this stock repurchase will be subject to the stock repurchase loan contract officially signed by both parties. The Notice on the Establishment of Stock Repurchase and Increase in Shareholding Loans issued in October last year clearly stated that 21 national financial institutions, including policy banks, state-owned banks, and joint-stock banks, can issue stock repurchase and increase in shareholding loans. According to Wind data, hundreds of listed companies have disclosed the progress of their own or major shareholders' stock buybacks and loan increases. Among the loan providers disclosed by these listed companies, Bank of Beijing and Bank of Shanghai do not belong to the aforementioned 21 national financial institutions, indicating that this business is expected to expand. It's always good if we can get the qualification. "" As soon as the policies related to stock repurchase and increased holdings loans were introduced, we carefully studied them. Unfortunately, city commercial banks were not included in the list of lending institutions. Generally speaking, city commercial banks have a good understanding of local listed companies, so we are actively striving for them. It's always good to get the qualification. ”During the interview, several representatives from city commercial banks expressed similar thoughts to the reporter. In fact, the stock repurchase and loan business is attracting banks to actively layout: qualified banks compete for high-quality customers, while unqualified banks actively apply for such business qualifications in order to expand business growth. The above-mentioned person from a city commercial bank who is expected to obtain loan qualifications told reporters that on the one hand, the stock repurchase and increase loan business can provide a standardized and efficient financing channel for eligible listed companies and major shareholders in the service area of the city commercial bank, support their stability and enhance corporate value, convey confidence, and effectively enhance the vitality and resilience of the regional capital market. On the other hand, this business is conducive to optimizing the credit structure and customer structure of city commercial banks, while preventing risks, and better directing financial vitality to the capital market, helping to promote industrial upgrading and high-quality economic development in the region. If the city commercial bank obtains the qualification, it will strongly support the enterprises within its service area (especially local listed companies), and bring business growth with the release of market demand. From the perspective of banks, the stock repurchase and increase in holdings loan business not only broadens credit channels, but also enhances cooperation with high-quality listed companies. A representative from a major state-owned bank stated that the contracted customers for such loans are mostly qualified enterprises. This business helps to enhance the stickiness of high-quality customers and collaborates with investment banks, wealth management and other business lines to maximize the overall interests of the group by strengthening the linkage between banks and companies. Of course, the most important thing is to effectively support the stable development of the capital market, "the person emphasized. The person in charge of a listed company in the food and beverage industry said, "Since the launch of the stock repurchase and increase holding loan, a continuous stream of banks have come to negotiate this business, including local branches, headquarters, and some securities firms will introduce it in the middle." Faced with numerous choices, the person in charge admitted that their decision-making criteria are to see which bank provides more competitive conditions. The notice from the demand side regarding timing and cost constraints states that financial institutions can apply for re loans from the People's Bank of China after issuing such loans. The total amount of the first re loan is 300 billion yuan, with an annual interest rate of 1.75%. In practice, there is often a spread between the interest rate of stock repurchase and increase loans issued by banks and the 1.75% refinancing rate, which constitutes the bank's income. The actual lending scale of banks is largely constrained by the total refinancing amount. In addition, banks usually set an internal limit on the amount of special loans issued to a single listed company or major shareholder, which shall not exceed a specific proportion of the total amount of repurchased or increased shares announced by the company. From the perspective of listed companies involved in special loans, private enterprises are the absolute mainstay. Industry insiders say that the relevant loans have effectively solved the problem of mismatched funding windows and repurchase timing for enterprises. The person in charge of the listed companies in the food and beverage industry mentioned above said, "In the past, there were often situations where the book funds were insufficient when the stock price was suitable, and the stock price was not ideal when the funds were abundant. Special loans provided companies with more flexible and convenient financial tools. However, many listed companies also adopted a wait-and-see attitude. According to journalist research, there are two main reasons: firstly, some companies believe that they have not encountered a suitable repurchase window in the past year, and secondly, the interest rate level of this product has limited appeal to some companies. A person from a listed company in the northern region said, "Repurchase is a decision made by a company that believes its own value is undervalued, and it is essentially independent of financing behavior. Before the tool was launched, we had completed a round of repurchases; after the tool was introduced, we have not encountered a suitable repurchase window." For companies in the appropriate repurchase period, choosing this tool is based on its convenience and interest rate advantages. However, with changes in the market financing environment, some qualified enterprises have found that the interest rate advantage of this loan is weakening. The person in charge of the listed companies in the food and beverage industry mentioned above revealed, "We have considered using this tool, but as other loan interest rates continue to decline, the special loan interest rate no longer has a significant advantage." It is reported that the loan interest rate for stock repurchase and increase in holdings is generally not lower than 1.75% and not higher than 2.25%. In addition, restrictions on loan recipients have also affected the willingness of some enterprises to use them. Some companies have explored seeking special loans for major shareholders to increase their stock holdings, but due to the fact that the product is only open to institutional shareholders and not to natural persons, it has not been promoted. The person in charge of the listed company in the food and beverage industry stated, "If this tool is opened to natural persons in the future, it will have strong appeal." According to the announcement of the listed company, in terms of loan types, stock repurchase special loans dominate; In terms of term structure, a three-year term has become the mainstream choice for listed companies. Enterprises generally believe that a longer repayment period is more in line with actual needs and provides sufficient time for listed companies to carry out medium - and long-term market value management. Industry insiders have stated that since repurchase funds are considered as expense expenditures, they cannot be repaid through project repayment like operating loans. If the term is too short, large-scale repurchases may significantly consume the company's profits for the year and bring significant financial pressure. Unless they have sufficient surplus funds, companies tend to have longer repayment cycles, "the person said. (New Society)