(Yicai) April 10 -- Since China introduced a special lending facility to fund share buybacks and stake increases last year, banks have been quick to use this tool to do their bit to steady the country’s stock market, China Central Television News said.

CCTV News reported today that commercial banks have extended more than CNY300 billion (USD40.9 billion) in credit since September, when the People’s Bank of China introduced a financial support package for the property and stock markets.

The package included the creation of the special lending facility to guide banks in funding stock repurchases and stake increases by listed businesses and their major shareholders.

The facility’s initial quota was CNY300 billion, with further allocations to follow based on demand, PBOC Governor Pan Gongsheng said at the time.

Chinese mainland stock markets have rebounded for three straight days after plunging at the start of the week over concerns about US tariffs. At today’s close, the Shanghai Composite Index was up 1.2 percent, while the Shenzhen Component Index and ChiNext Index had both gained 2.3 percent.

Industrial and Commercial Bank of China, the country’s largest state-owned lender, has supported more than 400 share buyback programs worth more than CNY100 billion (USD13.6 billion), an insider at the lender told CCTV News.

Recently, multiple listed firms have approached ICBC with requests for funding for buybacks and stake boosts. The funds involved are worth over CNY50 billion, and the requests are now being processed by the bank, the person added.

As of April 6, China Merchants Bank had approved 288 such loans totaling CNY104.8 billion, according to the report. Other major state lenders, including Bank of China, Agricultural Bank of China, China Construction Bank, and Bank of Communications, have collectively lent tens of billions of yuan for stock repurchases and shareholding increases.

Since April 7, around 200 mainland-listed companies, including industry giants such as liquor producer Kweichou Moutai, energy titan Petrochina, and battery leader Contemporary Amperex Technology, have disclosed share repurchase or shareholder stake-boosting plans.

Editor: Tom Litting