Beijing Balance Medical Technology Pioneers Stock Market Support

Beijing Balance Medical Technology's controlling shareholder plans to increase his stake using central bank-backed loans, making it a pioneer in leveraging China's new policy to support the stock market. The People's Bank of China is providing up to 300 billion yuan in cheap loans to foster market stability.

Beijing Balance Medical Technology Co revealed plans on Tuesday to leverage central bank-backed loans, enabling its controlling shareholder to increase his stake in the company. This move positions the firm among the first to utilize the People's Bank of China (PBOC)'s new policy instrument aimed at revitalizing the stock market.

The PBOC recently announced the provision of up to 300 billion yuan ($42.75 billion) in low-cost loans aimed at assisting banks in financing share purchases and buybacks. This initiative is part of a broader policy framework designed to energize China's sagging economy.

In alignment with this strategy, Jin Lei, the controlling shareholder of Balance Medical Technology, intends to acquire up to 2.13 million shares over six months, a decision announced in an exchange filing. This activity coincided with the reopening of China's stock market following a week-long National Day holiday, during which positive policy measures led the CSI300 Index to surge by 25%.

(With inputs from agencies.)