Chinese brokerage Haitong cites liquidity risk as it scraps buyback
[HONG KONG] Haitong Securities Co, one of China's biggest brokerages, scrapped a share buyback that it announced during the nation's stock-market crisis in July, citing potential risks to its operations, liquidity and credit ratings.
Some of the company's bond holders had asked for additional guarantees if Haitong went ahead with the buyback, the brokerage told Shanghai's stock exchange on Tuesday.
In July, Haitong said that it planned a 21.6 billion yuan (S$4.6 billion) buyback of its stock on the mainland and in Hong Kong. That announcement came just as the Chinese government was rolling out a series of measures to stabilize a plummeting stock market.
In the statement, Haitong cited the scale of its outstanding domestic bonds - 66 billion yuan - and said that the company had overseas debt, too.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Asia: Markets mixed as global rally stalls, eyes on yen
Singapore shares retreat at Thursday’s open; STI down 1.1%
Stocks to watch: Keppel, FCT, Suntec Reit, OUE Reit, Clint, Digital Core Reit, OKP, Cordlife
Europe: Stoxx 600 falls on banks drag; tech contains losses on ASMI boost
US: Stocks end flat ahead of key inflation data
Hong Kong spot crypto ETFs to start trading next week