Chongqing Changan Automobile (000625,200625) announced it intends to spend up to HK$610 million to buy back its B shares, and the plan has been approved by the State Administration of Foreign Exchange and the Chongqing Foreign Exchange Administrative Department, reports Yicai.com, citing a company filing.

The company had completed the approval procedures for the repurchase of the B shares, and has six months from the date of shareholder approval to complete the share buyback.

According to Changan Auto, it will repurchase a maximum of 270 million shares, accounting for 5.58 percent of total equity, or 25.14 percent of the total amount of B shares, at up to HK$3.76 per share.

Changan Auto said the share buyback will help to stabilize the market and increase investors’ confidence.

Shares of Changan Auto rose 4.17 percent to close at HK$3.25 per share today.