After China Mobile threw out a large-scale shareholding increase plan of 3 billion yuan to 5 billion yuan, China Telecom Corporation Limited(601728) major shareholder China Telecom Corporation Limited(601728) group also shot to stabilize the stock price. In addition to the two major operators, a number of listed companies have also launched share repurchase plans, and real gold and silver support their share prices.
On January 27, China Telecom Corporation Limited(601728) announced that in order to take measures to stabilize the stock price, China Telecom Corporation Limited(601728) group plans to increase its A-share holdings of the company within 12 months from January 28, 2022, with a proposed increase of no less than RMB 500 million. There is no price range for this increase, and the increase is funded by self owned funds. From December 22, 2021 to January 19, 2022, the closing price of the company’s shares has been lower than the adjusted net asset value per share for 20 consecutive trading days, triggering the starting conditions for the measures to stabilize the stock price.
At the same time, China Telecom Corporation Limited(601728) said that this shareholding increase is based on firm confidence in the future development prospects of the company and high recognition of the investment value of the company, aiming to safeguard the interests of small and medium-sized investors and actively stabilize the stock price of the company.
China Telecom Corporation Limited(601728) officially landed on A-Shares on August 20 last year, with an issue price of 4.53 yuan / share. Since returning to a shares, the share price has fluctuated downward as a whole. As of the closing on January 28, it was reported at 4.16 yuan / share, which has fallen by more than 8% from the issue price.
On the same day, China Mobile disclosed the progress of increasing its holdings, saying that during the period from January 21, 2022 to January 27, 2022, China mobile group increased its holdings of 2620821 A shares, accounting for about 0.123% of the total issued shares of the company and about 3.099% of the total issued A-Shares of the company. The cumulative holdings increased by about 1.509 billion yuan, which has exceeded 50% of the lower limit of the amount range of the increase plan. Earlier, China Mobile announced that the actual controller, China Mobile Group, plans to increase its A-share holdings by no less than 3 billion yuan and no more than 5 billion yuan.
In the 19 trading days since the beginning of 2022, the sharp decline mode has been started. As of January 28, the Shanghai index fell 7.65% and the Shenzhen Component Index fell more than 10%.
In the context of the wailing of the stock market, in addition to the two major operators, a number of listed companies have also issued share repurchase plans to open the market protection mode. According to statistics, since 2022, more than 70 companies have issued repurchase plans, and more than 160 listed companies have implemented share repurchase operations during the year. In terms of individual stocks, in addition to the two major communication giants, Changchun High And New Technology Industries (Group) Inc(000661) known as “yaomao” ranks first with a repurchase amount of 534 million yuan, and Changchun High And New Technology Industries (Group) Inc(000661) share price has fallen by nearly 36% during the year. Zhejiang Chint Electrics Co.Ltd(601877) followed with a total repurchase amount of 519 million yuan. In addition, the repurchase amount of Boe Technology Group Co.Ltd(000725) , Tianjin Zhonghuan Semiconductor Co.Ltd(002129) , Shanghai Milkground Food Tech Co.Ltd(600882) , Hengyi Petrochemical Co.Ltd(000703) and Baoshan Iron & Steel Co.Ltd(600019) exceeded 100 million yuan.
Insiders said that as a basic institutional arrangement of the capital market, repurchase is an important measure for listed companies to show confidence. It can convey multiple information to investors, such as stable performance and abundant cash flow. At the same time, it is also an important tool to maintain the stability of stock price. As for the boost effect of the “repurchase tide” on the market, it remains to be seen.
