Since 2022, listed companies have intensively issued announcements on the progress of company repurchase and increase of holdings by important shareholders. After a number of listed companies released relevant plans, they took out “real gold and silver” for implementation in a very short time, many of which spent more than 100 million yuan, which significantly boosted investor confidence.
fast repo
Some listed companies immediately implement the repurchase plan after issuing the repurchase plan. According to the data, 14 listed companies conducted repurchase operations within one week after issuing the repurchase plan, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) , Suzhou Hengmingda Electronic Technology Co.Ltd(002947) , Jiangsu Sinojit Wind Energy Technology Co.Ltd(601218) , Ningbo Huaxiang Electronic Co.Ltd(002048) , Zhejiang Dali Technology Co.Ltd(002214) , Bgi Genomics Co.Ltd(300676) and other listed companies implemented repurchase within three trading days after issuing the repurchase plan.
Jiangsu Sinojit Wind Energy Technology Co.Ltd(601218) implement the repurchase plan the next day after the issuance of the repurchase plan. The company disclosed the repurchase plan on January 24. It plans to repurchase no less than 25 million yuan (inclusive) and no more than 50 million yuan (inclusive), and the repurchase price is no more than 8.94 yuan / share. The repurchased shares will be used for the company’s subsequent implementation of equity incentive or employee stock ownership plan. On January 25, the Company repurchased 5.6927 million shares for the first time through centralized bidding, accounting for 0.58% of the total share capital of the company.
Some listed companies completed the repurchase plan in just a few days. Take Tianjin Zhonghuan Semiconductor Co.Ltd(002129) as an example, the company announced on January 11 that the proposed repurchase amount is no less than 355 million yuan and no more than 391 million yuan. From January 12 to 13, the Company repurchased about 9.5153 million shares of the company through centralized bidding through the special securities account for repurchasing shares, with a total transaction amount of 391 million yuan (excluding transaction costs). The company has completed the repurchase according to the disclosed repurchase plan.
Data show that since 2022, a total of 302 listed companies have released repurchase progress, 60 companies have repurchased more than 100 million yuan, and listed companies in materials, semiconductors, medicine, food and other industries have the highest repurchase amount.
Fu Lichun, founding partner and chief economist of Yuntai capital, said that before the Spring Festival holiday, there was a continuous correction of a shares. Some listed companies actively managed the market value and implemented the repurchase plan for the purpose of maintaining the stock price.
shareholders actively increase their holdings of
While listed companies actively repurchase their own shares, important shareholders are not “idle”. Important shareholders of many listed companies issued share increase plans before the Spring Festival, and a large proportion of share increase was carried out just after the Spring Festival holiday.
Since 2022, the number of important shareholders of listed companies implementing the shareholding increase plan has increased significantly year-on-year, and a total of 78 important shareholders of listed companies have implemented the shareholding increase plan. In the same period of 2021, only 24 important shareholders of listed companies implemented the shareholding increase plan.
Jianxi Lianchuang Opto-Electronic Science&Technology Co.Ltd(600363) on February 7, it was announced that the controlling shareholder Electronics Group had increased its holdings of 500000 shares of the company, with an increase of 12.4898 million yuan, exceeding 50% of the lower limit of the planned increase. Previously, the company announced that the controlling shareholders planned to increase their holdings with their own funds through the securities trading system of Shanghai Stock Exchange by no less than 20 million yuan and no more than 100 million yuan within 12 months from January 26.
Jianxi Lianchuang Opto-Electronic Science&Technology Co.Ltd(600363) the staff of the Securities Department told the reporter of China Securities News that the controlling shareholders actively implemented the shareholding increase, mainly to safeguard the interests of small and medium-sized investors and the stability of the capital market and boost the confidence of investors. Therefore, the shareholding increase was carried out shortly after the issuance of the shareholding increase plan.
boost investor confidence
Fu Lichun said that whether it is repurchase or increase, listed companies and important shareholders are sending positive signals to investors that the share price is undervalued and the share price will rise in the future. In particular, after the release of the repurchase and shareholding increase plan, the company took out “real gold and silver” for substantive operation, indicating that the listed companies and important shareholders are optimistic about the internal value and long-term development prospects of the company.
Since 2022, the phenomenon of “increasing shareholder repurchase” has decreased. In order to prevent the occurrence of “flickering” repurchase and other acts, the regulatory authorities have taken many measures in recent years and continuously improved the regulatory measures. On January 5, the CSRC issued the share repurchase rules of listed companies, requiring that after the share repurchase plan of listed companies is disclosed, it shall not be changed or terminated without sufficient and legitimate reasons. If it is really necessary to change or terminate, it shall comply with the relevant provisions of the CSRC and the exchange, and perform the corresponding decision-making procedures.
Pan Helin, executive dean of the Digital Economy Research Institute of Central South University of economics and law, believes that repurchase often has certain requirements on the cash flow of listed companies. If a listed company fails to fully fulfill its commitments for various reasons, it will not only lead to a crisis of investor trust, but also may be subject to “special attention” from the supervision, which will have a negative impact on the development of the company. Listed companies should start from the actual operating conditions, study the enterprise development stage and decide whether to repurchase. For mature enterprises, if the stock price is low, repurchase is conducive to the long-term development of the enterprise; For growing enterprises, whether they have sustained cash flow support should be considered before issuing the repurchase plan.
