When A-Shares fell sharply one after another, a number of listed companies “copied the bottom” and firmly valued the development of the company with real gold and silver.
On January 27, China Telecom Corporation Limited(601728) disclosed measures to stabilize the stock price because the stock price broke net for 20 consecutive days: the controlling shareholder China Telecom Corporation Limited(601728) group plans to increase its holdings of the company by no less than RMB 500 million within 12 months from January 28, 2022. China Mobile also issued an announcement on the progress of the actual controller’s increase in the company’s shares. From January 21 to January 27, the cumulative increase was about 1.509 billion yuan, accounting for about 3% of the company’s issued A-shares.
At the same time, a number of listed companies issued repurchase progress announcements to show their confidence in the company’s future with practical actions.
share price broke net for 20 consecutive days! China Telecom Corporation Limited(601728) start measures to stabilize stock price
On January 27, China Telecom Corporation Limited(601728) issued an announcement on measures to stabilize the stock price. The controlling shareholder China Telecom Corporation Limited(601728) group plans to increase its holdings by no less than 500 million yuan.
On the evening of China Telecom Corporation Limited(601728) 27, it was announced that the closing price of China Telecom Corporation Limited(601728) shares had been lower than the adjusted net asset value per share for 20 consecutive trading days from December 22, 2021 to January 19, 2022, triggering the starting conditions for the previously disclosed measures to stabilize the stock price.
According to the announcement, according to the written notice of China Telecom Corporation Limited(601728) group, China Telecom Corporation Limited(601728) group plans to increase its A-share holdings 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 source of the increase is its own funds. China Telecom Corporation Limited(601728) the group will gradually implement the shareholding increase plan based on the reasonable judgment of the company’s stock price and the fluctuation of the company’s stock price and the overall trend of the capital market.
The company said that the increase of China Telecom Corporation Limited(601728) group’s holdings is based on firm confidence in the company’s future development prospects and high recognition of the company’s investment value, aiming to safeguard the interests of small and medium-sized investors and actively stabilize the company’s share price.
On August 20, 2021, China Telecom Corporation Limited(601728) officially landed in A-Shares with an issue price of 4.53 yuan / share. According to the stock price stabilization plan formulated by the company at the time of listing, within three years from the date of issuance and listing of the company’s a shares, if not due to force majeure, when the closing price of the company’s A-Shares is lower than the latest audited net asset value per share of the company for 20 consecutive trading days (hereinafter referred to as “starting conditions”), and on the premise of complying with relevant laws and regulations, The company and relevant entities will start measures to stabilize the A-share price.
According to the announcement on China Telecom Corporation Limited(601728) January 20, as of December 31, 2020, the latest audited net assets per share of the company was RMB 4.491. On June 1, 2021, the company distributed 2020 cash dividend of RMB 0.104269 per share (before tax). The final number of shares issued by the company’s initial public offering of A-Shares was 10.575 billion, and the net amount of raised funds was about 47.516 billion yuan.
In terms of share price, China Telecom Corporation Limited(601728) has shown a shock downward trend since returning to a on August 20, 2021. As of the closing on January 27, the company’s share price had been reported at 4.15 yuan / share, down more than 8% from the issue price, and the latest total market value was 379.8 billion yuan.
It is worth mentioning that the announcement also suggests that on September 22, 2021, China Telecom Corporation Limited(601728) issued the announcement on the plan of controlling shareholders to increase their holdings of shares, China Telecom Corporation Limited(601728) the group plans to increase its holdings of shares of the company at an opportunity within 12 months from September 22, 2021, with an increase of no less than RMB 4 billion. The above-mentioned share increase plan is a voluntary share increase plan of China Telecom Corporation Limited(601728) group, which is still within the implementation period and will be implemented separately from this stable share price increase plan.
the actual controller of China Mobile spent 1.5 billion yuan to increase its holdings in five trading days
China Mobile announced on the 27th that the company increased its holdings of 26.2082 million shares from January 21 to January 27, accounting for about 0.123% of the total issued shares of the company (before exercising the over allotment option) and about 3.099% of the total issued A-Shares of the company (before exercising the over allotment option), with a cumulative increase of about 1.509 billion yuan (excluding commissions and transaction taxes).
According to China Mobile’s previous announcement, China Mobile Group, the actual controller of the company, plans to increase its A-share holdings at an opportunity from January 21, 2022 to December 31, 2022, with a cumulative increase of no less than RMB 3 billion and no more than RMB 5 billion.
This means that as of the closing of the 27th, only five trading days from the start of the repurchase plan, the cumulative holdings of China Mobile has exceeded 50% of the lower limit of the amount range of the holdings increase plan.
China Mobile said that based on its firm confidence in the company’s future development prospects and high recognition of the medium and long-term investment value, in order to effectively safeguard the interests of small and medium-sized investors and the stability of the capital market and boost the confidence of investors, China Mobile Group implemented the shareholding increase plan.
As of January 27, 2022, China Mobile Group directly held 26.2082 million A-Shares of the company and indirectly held 14.89 billion Hong Kong shares of the company through China Mobile Hong Kong (BVI) Co., Ltd., accounting for 69.960% of the total issued shares of the company (before exercising the over allotment option).
From the stock price performance, as of the closing on January 7, the latest share price of China Mobile was 57.58 yuan / share, which was the same as its offering price. China Mobile A shares were listed on the Shanghai Stock Exchange on January 5 this year.
several companies bought back
in addition to China Telecom Corporation Limited(601728) and China Mobile, the two communication giants have increased their holdings and repurchased one after another. On the 27th, a number of listed companies disclosed the announcement of the progress of increasing holdings and repurchases. On the occasion of the sharp decline, high-quality listed companies have a strong willingness to repurchase shares of the company, and they are optimistic about the follow-up development of the company with practical actions.
For example, Shanghai Milkground Food Tech Co.Ltd(600882) announced that as of January 27, the company had repurchased more than 6.3767 million shares, accounting for 1.24% of the total shares of the company, and the total amount paid was RMB 343 million (excluding commissions and other transaction costs).
Shandong Shida Shenghua Chemical Group Company Limite(603026) announced that the chairman of the company and others had increased their holdings of 334600 shares as of January 27, accounting for 0.17% of the total share capital, with an increase of 57.7 million yuan.
Ningbo Huaxiang Electronic Co.Ltd(002048) announced that the Company repurchased 10 million yuan and 496600 shares on January 27.
According to the company’s previous announcement on January 24, the company plans to use its own funds to buy back the company’s shares in the form of centralized bidding transaction for employee stock ownership plan or equity incentive. The total amount of repurchase funds is between 210 million yuan and 215 million yuan.
According to the announcement of Zhejiang Dali Technology Co.Ltd(002214) , on January 27, the company implemented share repurchase through centralized bidding transaction through the special securities account for repurchase for the first time. The number of shares repurchased was 320000, accounting for about 0.0534% of the total share capital of the company, and the total transaction volume was 5.05 million yuan (excluding transaction costs).
Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) announced that as of the closing on January 27, the company had repurchased about 73.9541 million shares of the company through centralized bidding, accounting for about 5.55% of the total share capital of the company, and the total amount paid was about 424 million yuan (excluding transaction costs).
According to the data, since 2022, as of January 27, 71 listed companies have issued repurchase plans, of which 25 have repurchased through centralized bidding transactions and 46 are directional repurchases; From the perspective of repurchase purpose, equity incentive cancellation accounts for more than 60%, and the rest is the implementation of equity incentive, market value management, profit compensation and others. Since January this year, more than 260 A-share listed companies have issued repurchase progress announcements.
232 listed companies buy back to support their share price! 161 companies have implemented 6 billion and 71 official announcements. Confidence is more important than gold
