Repurchase of listed companies continues to boost investor confidence with actions

Recently, listed companies have constantly announced repurchase, and industrial capital is taking practical actions to provide a platform for the company. According to statistics, at the beginning of this year, as of March 13, 305 companies had repurchased, with a repurchase amount of 18.476 billion yuan. In addition, the operating conditions of some listed companies in the first two months show that the profitability can be expected.

On March 13, Jiangsu Hengrui Medicine Co.Ltd(600276) disclosed that the company planned to repurchase shares with 600 million ~ 1.2 billion yuan, Jiangsu Hengrui Medicine Co.Ltd(600276) hit a recent low of 34.7 yuan / share on March 9. Recently, many companies have repurchased many times. For example, on March 9, Hengli Petrochemical Co.Ltd(600346) issued a repurchase announcement. The company plans to repurchase shares with 1 billion yuan to 1.5 billion yuan, which is the fourth repurchase of Hengli Petrochemical Co.Ltd(600346) . Midea Group Co.Ltd(000333) , which was announced to be repurchased on March 10, is also repurchased for many times, with a total amount of no more than US $5 billion. Eve Energy Co.Ltd(300014) which was announced to be repurchased on the same day is also repurchased for many times. According to statistics, as of March 13, 305 companies had repurchased, with a repurchase amount of 18.476 billion yuan, and more than 500 million yuan were Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Zhejiang Chint Electrics Co.Ltd(601877) , Saic Motor Corporation Limited(600104) , Jiangsu Hengrui Medicine Co.Ltd(600276) , 360 Security Technology Inc(601360) , BOE, etc.

Most of these companies have excellent performance, good corporate governance and good profitability in the past two years. Some of them have experienced sharp declines in share prices from high levels due to policy changes, industry changes or purely market style changes. Repurchase means that listed companies recognize the current stock price, have good cash flow and are willing to buy at the current price, which shows the company's attitude and hopes to boost investor confidence. Repurchase, especially for the purpose of cancellation, can reduce the number of circulating share capital of listed companies and increase the content of performance per share. Although shareholders have not increased their holdings, the share proportion of listed companies has increased.

Repurchase does not mean that the share price is bound to rise. For example, companies such as Gree Electric Appliances Inc.Of Zhuhai(000651) and others have repurchased many shares, but the share price is still sluggish, as is Xiaomi and other companies in Hong Kong stocks. However, a large number of listed companies choose to buy back, which shows that a group of people who understand the industrial development and the situation of the company are optimistic about the follow-up trend of the company, which is also an indicator for peripheral investors to judge the current situation.

In addition, recently, more than 20 listed companies led by Kweichow Moutai Co.Ltd(600519) also announced the results of the first two months. On March 7, the monthly operating data released by Kweichow Moutai Co.Ltd(600519) exceeded market expectations, and the stock price once rose by 4%. Yonghui Superstores Co.Ltd(601933) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Tongwei Co.Ltd(600438) , Guangzhou Tinci Materials Technology Co.Ltd(002709) and other companies also announced the operating data of the first two months.

Previously, some companies in automobile, port and other industries would publish monthly sales data. Now some companies choose to publish the operation of the first two months to make the investment more accurate. The company's operation can only be judged after the past quarter. Now the judgment cycle is greatly shortened. From the current situation of companies that released the operating data of the first two months, the performance is generally good. Of course, some blue chip companies may choose to publish. In any case, excellent listed companies are trying to release benefits to investors with actions.

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