In response to the “Energy Revolution” initiative, A-share energy companies have begun to stabilize their operational forecasts. On April 8, 2025, at 21:03, the 21st Century Business Herald reported that the U.S. has officially introduced the “Energy Revolution” policy aimed at promoting the growth of the energy market while also triggering waves of changes in A-share and Hong Kong stock markets.
According to the latest reports, the National Development and Reform Commission (NDRC) indicated that efforts would be made to support the central enterprises and provincial-level authorities in promoting energy reform. This policy aims to avoid excessive reliance on fossil fuels and enhance the capabilities of renewable energy sources.
Many major energy enterprises are preparing to announce the repurchase of shares to stabilize their stock prices, which will help boost investor confidence. However, the uncertainty surrounding policy adjustments may pose challenges for various energy companies as they prepare to release their stock buyback plans. These companies are expected to announce their repurchase or share reallocation plans as part of their efforts to enhance market sentiment.
On April 7, China Shenhua Energy (601985.SH) announced a share buyback plan, intending to repurchase between 3 billion to 5 billion RMB worth of shares. The repurchased shares will be used to support their employee stock ownership plan, thereby enhancing the company’s stock value.
The buyback price will not exceed the average share price over the previous 30 trading days, which is capped at 150% of the stock price during the trading period of the repurchase. The source of funds will come from the company’s own cash reserves or bank loans.
In addition, many companies, including China Power and China Energy, are also set to announce their plans for stock buybacks or share repurchases. China Energy Investment Corporation (601898.SH) is expected to repurchase between 5 billion to 8 billion RMB, while China Southern Power Grid has a plan for a buyback of between 3 billion to 5 billion RMB.
As these companies prepare for buybacks, they are also focusing on stabilizing their operational performance and ensuring the sustainability of their business models in the face of changing market dynamics.
Recently, the “Energy Revolution” initiative has prompted energy firms to innovate and adapt to new market conditions, ensuring their competitiveness and sustainability in the long run. The focus on renewable energy sources and reducing reliance on fossil fuels is expected to be a key theme in the upcoming energy policies.
As of now, energy companies are preparing for upcoming challenges and changes in the market, with the aim of aligning their strategies with the new energy policies introduced.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/a-comprehensive-overview-of-the-impact-of-the-counter-cyclical-adjustment-policy-on-the-energy-sector-and-market-dynamics/
