Recently, the A-share market has been significantly adjusted. At the same time, industrial capital represented by listed companies and their major shareholders or executives are buying against the trend – a group of companies are implementing share repurchase with real gold and silver, and a group of executives or actual controllers have launched large-scale shareholding increase plans and entered the market with cash.
What kind of wealth logic is behind the entry of industrial capital against the trend?
Statistics show that the recent increase in holdings in the A-share market has been increasing.
Last week (March 7-march 11), 27 listed companies have been increased by important shareholders, with a cumulative increase of 50.489 million shares, with a total increase of 613 million yuan. The cumulative increase in holdings and the number of shares increased by 103% and 38% respectively compared with the previous week (February 28 – March 4), indicating that industrial funds entered the market to sweep goods while taking advantage of the deep adjustment of the market.
Meanwhile, 54 listed companies repurchased 595 million shares last week, with a cumulative repurchase amount of 8.41 billion yuan. The data showed that except that it was significantly lower than the previous week (February 28 – March 4), it was significantly higher than the other two weeks in February.
If we lengthen our horizons, we can see that the number and amount of listed companies to be increased and repurchased in the past four weeks have increased significantly, and there has been a significant climax of increased holdings and repurchases of listed companies.
In the face of the continuous decline of a shares, a number of listed companies or senior executives intensively launched stock repurchase and large holdings increase plans. The number of companies directly increased from May to may last week, double that of the previous week. After the introduction of the shareholding increase plan, many companies implemented it quickly.
The actual controller of Haier Smart Home Co.Ltd(600690) , Haier Group, and its concerted actor, Qingdao haichuangzhi Management Consulting Co., Ltd. (hereinafter referred to as “haichuangzhi”), launched an increase plan on March 9 on the basis of an increase of 6.4 million shares: Based on its confidence in the long-term development of China’s capital market and the business prospects of the company, haichuangzhi plans to continue to increase its A-Shares in the company in the next six months, The cumulative increase amount shall not be less than 200 million yuan and not more than 350 million yuan.
Since then, the company bought 5.3 million shares within 2 days after the launch of the plan, at a cost of 118 million yuan.
Let’s look at the repurchase plan. Last week, 15 companies announced the repurchase plan, which was significantly higher than that in the previous three weeks. The total amount of shares to be repurchased and the total number of shares to be repurchased reached 8.713 billion yuan and 206 million shares respectively, an increase of 275% and 377% respectively over the previous week.
Since March 10, Jiangsu Hengrui Medicine Co.Ltd(600276) , Midea Group Co.Ltd(000333) , Hengli Petrochemical Co.Ltd(600346) , Yonyou Network Technology Co.Ltd(600588) , Opple Lighting Co.Ltd(603515) , Eve Energy Co.Ltd(300014) and other companies have launched large repurchase plans. On March 10 and 11, 4 and 6 disclosed repurchase plans respectively.
For example, Jiangsu Hengrui Medicine Co.Ltd(600276) announced on March 13 that it planned to buy back the company’s shares from the secondary market by means of centralized bidding transaction with a repurchase price of no more than 60.22 yuan / share, and the repurchased shares would be used for employee stock ownership plan or equity incentive.
