A QUARTER of Shanghai’s listed companies have spent a combined 24.7 billion yuan (US$4 billion) buying their own shares since July 1, responding to government calls to stabilize the market, the Shanghai Stock Exchange said Friday.

    The 266 companies are part of the 456 Shanghai-listed companies that have so far announced plans to increase holdings, the bourse said on its official microblog. Shanghai hosts a total of 1,071 listed companies.

    Regulators have encouraged listed firms to buy shares and banned major shareholders from reducing holdings as part of efforts to stem a market rout that started in mid-June.

    China’s market has stabilized over the past two weeks.

    Buying shares by listed companies, shareholders and senior executives “should become a regular mechanism by which listed companies return favor to their shareholders,” the exchange said.

    “Meanwhile, the exchange will continue to...spot and punish illegal share sale behaviors,” it said, adding that the exchange was currently dealing with eight such cases.

    The China Securities Regulatory Commission, the stock market regulator, Friday said separately it had been investigating illegal margin financing activities and would also step up a crackdown on insider trading and market manipulation. (SD-Agencies)