What’s new: Inner Mongolia Baotou Steel Union Co. Ltd. has bought back 43.41 million shares worth 49.98 million yuan ($7.06 million) as of April 30, according to a Friday filing to the Shanghai Stock Exchange.
The company’s biggest shareholder, Baotou Iron and Steel Group Co. Ltd., also announced Tuesday that it will buy an additional 2 billion yuan to 4 billion yuan worth of Baotou Steel Union shares.
The buyback aims to prop up Baotou Steel Union’s stock price.
The background: According to a 2018 policy by the China Securities Regulatory Commission, listed companies whose shares trade below 1 yuan for 20 consecutive trading days will be delisted.
Baotou Steel Union’s closing share price has vacillated between 1.1 yuan and 1.2 yuan since February. On Tuesday, its stock closed at 1.12 yuan.
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Contact reporter Lu Yutong (yutonglu@caixin.com)
