The heat of repurchase and holdings increase in the A-share market remains unchanged. On the evening of April 12, Ginwa Enterprise (Group) Inc(600080) , Sanan Optoelectronics Co.Ltd(600703) and other companies issued announcements on increasing their holdings or repurchase. According to choice data, since this year, more than 200 listed companies have issued announcements on repurchase and shareholding increase plans. “Bond issuance” repo and over raised fund repo have become new features of repo since this year.
Recently, the regulatory authorities have frequently issued a voice to encourage listed companies and their shareholders to buy back or increase their holdings with “real gold and silver”. Insiders said that listed companies and shareholders shot one after another, which greatly improved the confidence of investors.
increased share repurchase enthusiasm
Choice data show that since this year, more than 170 listed companies have issued share repurchase plans, and more than 80 companies have issued announcements on the shareholding increase plan of ordinary shareholders or directors, supervisors and senior executives. Among them, since March, the A-share market has continued to fluctuate, and the cases of overweight and repurchase have increased significantly.
Pan Helin, CO director and researcher of the digital economy and financial innovation research center of the International United Business School of Zhejiang University, told the reporter of China Securities Journal that the active repurchase of listed companies is not only from the perspective of the fundamentals of listed companies, but also expresses the confidence of Listed Companies in the macro-economy and financial market. The increase of repurchase cases shows that the current valuation of listed companies has strong attraction.
Some listed companies will implement the repurchase announcement as soon as possible. For example, Xinfengming Group Co.Ltd(603225) 3 disclosed the repurchase plan on March 7. The total repurchase fund is no less than 150 million yuan and no more than 300 million yuan, and the repurchase price is no more than 18 yuan / share. On March 8, Xinfengming Group Co.Ltd(603225) implemented the first Repurchase: 798100 shares were repurchased by means of centralized bidding transaction. The lowest price was 12.10 yuan / share, the highest price was 12.35 yuan / share, and the total amount paid was 9.7889 million yuan.
Major shareholders and executives of listed companies also showed positive performance in increasing their holdings. Since March, a total of 56 companies have disclosed the announcement of the shareholding increase plan of ordinary shareholders or directors, supervisors and senior managers, accounting for nearly 70% of the total number of companies that have disclosed the shareholding increase plan since this year. Among them, the upper limit of the increased holdings of 12 listed companies reached 100 million yuan, including Jiangsu Eastern Shenghong Co.Ltd(000301) , Luxshare Precision Industry Co.Ltd(002475) , Zhuzhou Kibing Group Co.Ltd(601636) , etc.
In addition, after the important shareholders of some listed companies complete the increase, they immediately release the follow-up increase plan. Taking Chacha Food Company Limited(002557) as an example, the company announced on March 16 that the controlling shareholder Huatai Group increased its holding of shares of the company by 149967 million yuan on March 15. Within six months from March 15, the first increase, Huatai Group plans to continue to increase its holding, with an increase of no less than 30 million yuan and no more than 60 million yuan (including the first increase of shares of 149967 million yuan).
regulators strongly support
On April 11, the CSRC, SASAC and all China Federation of industry and Commerce jointly issued a notice on further supporting the healthy development of listed companies, proposing to encourage listed companies to repurchase shares for equity incentive and employee stock ownership plans. Support eligible listed companies to repurchase in order to stabilize the share price. Encourage major shareholders and directors, supervisors and senior executives to hold shares of listed companies for a long time, and actively stabilize the stock price by increasing their shares when the company’s shares fall sharply.
That night, nine listed companies announced repurchase plans. The maximum amount of He Bei Cheng De Lolo Company Limited(000848) repurchase is 400 million yuan. According to the announcement, the company plans to use its own funds of 200 million to 400 million yuan to repurchase shares in the form of centralized bidding transaction for cancellation and reduction of registered capital, and the repurchase price shall not exceed 13.30 yuan / share.
As for the reasons for this repurchase, He Bei Cheng De Lolo Company Limited(000848) said that in view of the recent large fluctuations in the secondary market, based on the confidence in the company’s sustainable and stable development in the future and the recognition of the company’s value, in order to effectively safeguard the interests of investors, enhance investors’ investment confidence in the company, promote the matching of the company’s share price with its internal value, and promote the long-term development of the company, the company It is proposed to adopt the form of share repurchase, cancellation and reduction of registered capital to convey growth confidence, maintain the company’s share price, effectively improve the return on investment of the company’s shareholders, and promote the reasonable return of the company’s stock market price to the company’s internal value.
In addition, Luxshare Precision Industry Co.Ltd(002475) announced on April 11 that Wang Laisheng, one of the actual controllers and vice chairman of the company, plans to spend 200 million to 400 million yuan to increase the shares of the company based on the recognition of the internal value of the company, the firm confidence in the sustainable and stable development in the future and the social responsibility to jointly promote the stable and healthy development of the capital market.
Tian Lihui, President of the Institute of financial development of Nankai University, said that supporting eligible listed companies to repurchase for stabilizing share prices and other measures has played a positive role in stabilizing the market. Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that the above notice stabilized policy expectations and played a positive role in stabilizing market expectations and boosting market confidence.
transmit positive signals
The notice jointly issued by the CSRC, the SASAC and the all China Federation of industry and Commerce clearly supports listed companies to raise funds and implement share repurchase through issuing preferred shares, bonds and other channels according to law.
In terms of the companies that have issued repurchase plans at present, many listed companies adopt “bond issuance” repurchase and over raised fund repurchase, and the repurchase funds are no longer limited to their own funds. Industry insiders said that this sends a signal of promising development prospects of the company and plays the role of “pulling a thousand pounds in four or two”.
Recently, a number of listed companies, including Southern Publishing And Media Co.Ltd(601900) , Polaris Bay Group Co.Ltd(600155) , China Molybdenum Co.Ltd(603993) and others, announced that they planned to issue bonds to buy back the company’s shares. Dong Dengxin said that the threshold of “bond issuance” repurchase is not low. “When a listed company repurchases its shares by issuing bonds, its debt ratio must be low, otherwise it will increase its debt burden and affect its normal operation; secondly, the listed company has expressed ‘self-confidence’ to a certain extent, such as meeting the requirements of issuing bonds and having strong solvency. At the same time, this means that the company firmly believes that its share price has been seriously undervalued.”
In addition, there are companies “tasting fresh” to repurchase with over raised funds. On March 17, Sansure Biotech Inc(688289) issued a repurchase plan, which plans to use the over raised funds of 80 million yuan to 120 million yuan to repurchase the company’s shares. The company said that the capital source of the share repurchase was part of the initial over raised funds in the early stage Appotronics Corporation Limited(688007) , Genew Technologies Co.Ltd(688418) , Wuxi Delinhai Environmental Technology Co.Ltd(688069) and other companies have also issued plans to repurchase shares of the company with over raised funds.
Sansure Biotech Inc(688289) Board Secretary Peng Zhu said in an interview with China Securities Journal: “Using the over raised funds to buy back shares can not only boost the confidence of investors, but also reduce the occupation of the company’s funds and reduce external risks. At the same time, the company can fully mobilize the enthusiasm of employees and improve the cohesion of employees by establishing and improving the long-term incentive mechanism, so as to more effectively combine the interests of shareholders, the interests of the company and the personal interests of employees, which is conducive to promoting the stable, healthy and sustainable development of the company.”
