China National Coal increases stake in Shanghai-listed unit
China National Coal Group, the nation’s second-biggest coal producer, purchased stock in its Shanghai-listed unit as the government encourages share buybacks to boost the country’s stock market.
China National Coal bought 4.05 million shares in China Coal Energy Co., taking its stake to 57.55 percent from 57.52 percent, the listed unit said in a statement to the Shanghai Stock Exchange late Tuesday.
The transaction is valued at 45.4 million yuan ($6.7 million) based on the closing price of 11.22 yuan on Tuesday.
The parent may raise its stake in China Coal Energy by as much as 2 percent in the next 12 months, the company said in its statement.
China plans to ease rules for buybacks in order to help boost a stock market that had slumped 61 percent this year as of Sept. 19. PetroChina Co., the nation’s largest oil company said earlier this week that its parent bought 60 million of its Shanghai-listed shares, following the government order.
Tags: coal, Energy, PetroChina