At the beginning of 2022, many shareholders of listed companies have issued plans to reduce their shares.
According to the data, as of January 11, a total of 147 A-share listed companies have issued plans for shareholders to reduce their shares. Among them, the high-level reduction and large-scale reduction of shareholders have attracted the attention and concern of many investors.
frequent large-scale reduction plans
Shareholder reduction is one of the important criteria for investors to judge the rationality of stock price. In the shareholder reduction plan in recent days, Inmyshow Digital Technology (Group) Co.Ltd(600556) , xuanya technology and other companies issued the reduction announcement, which aroused strong concern in the market.
At the end of 2021, Inmyshow Digital Technology (Group) Co.Ltd(600556) set a record of seven trading days due to the concept of “Rainbow universe”. However, due to the problem of information disclosure, it was warned by the Shanghai Stock Exchange. After such a sharp rise in the stock price, the shareholders of Inmyshow Digital Technology (Group) Co.Ltd(600556) in the first week of 2022 successively announced the reduction plan.
On January 5 and 8, Inmyshow Digital Technology (Group) Co.Ltd(600556) disclosed the reduction announcement twice. Among them, shareholders Saifu investment and Tengyuan investment plan to reduce their shares by no more than 2%; The shareholders, xiulong Jinshi investment and Chengmai Xinsheng investment, plan to reduce their holdings by no more than 2.5%, and the four major shareholders plan to reduce their holdings by no more than 81.31 million shares, that is, no more than 4.5% of the total share capital. If calculated at the closing price of 11.28 yuan / share on the 11th, the two shareholder reductions can cash out 917 million yuan.
Similar to Inmyshow Digital Technology (Group) Co.Ltd(600556) , Shunya International Martech (Beijing) Co.Ltd(300612) issued a shareholder reduction plan immediately after the company’s share price rose sharply because the concept of “meta universe” was popular in the market. On January 7, Shunya International Martech (Beijing) Co.Ltd(300612) announced that the company’s controlling shareholders xuanya investment and orange power planned to reduce their holdings of no more than 9.54 million shares, that is, no more than 6% of the company’s total share capital.
Last December, Shunya International Martech (Beijing) Co.Ltd(300612) rose 125.09% in a week, which attracted the attention of Shenzhen Stock Exchange. Although Shunya International Martech (Beijing) Co.Ltd(300612) said in the reply to the letter of concern of Shenzhen Stock Exchange on December 17 that it had disclosed in advance that important shareholders would reduce their holdings in the next three months, and explained that the company did not cooperate with the reduction. However, after the official release of the reduction plan, many investors still expressed concern about the company’s future development and stock price trend.
Pan Helin, executive dean and professor of Digital Economy Research Institute of Central South University of economics and law, told Securities Daily, “A large proportion of shareholders\’ reduction can become the target of stock price; a small proportion of reduction can be regarded as the return of the market to shareholders. Therefore, in fact, what the market fears is not reduction, but high proportion reduction. Because shareholders have information and financial advantages, their large proportion reduction itself is a signal to other shareholders that the stock price is too high.”
Tian Yong, director of Guangdong Shengma law firm, holds the same view. According to him, the reduction of major shareholders has put pressure on the probability of the secondary market, and the reduction proportion of some shareholders does not exceed 5%, which can be understood as short-term operation and long-term optimistic about the prospects of the company; However, once the proportion of major shareholders is greater than 5%, or even the behavior of “clearing and reducing” leaving, unless there is other reasonable and credible explanation, it should be regarded as a major negative factor, especially for small and medium-sized investors.
\u3000\u3000 “As for the short-term impact and stock price fluctuation caused by the reduction of shareholders\’ holdings, investors should identify whether it is due to the short-term impact of the reduction or the long-term impact of high valuation. Although the reduction of major shareholders is mainly to meet their capital liquidity needs, there are many ways to improve liquidity, and a large proportion of reduction is not the optimal solution. Therefore, taking advantage of information asymmetry, In particular, during the reduction period, there has been continuous speculation to push up the stock price. It can be considered that poor performance expectations and possible lack of support for the stock price are one of the reasons for the reduction of shareholders. ” Said Shen Meng, executive director of Xiangsong capital.
there are many reasons for shareholders’ reduction
In addition to being used to judge the stock price, shareholder reduction is also one of the important standards to measure the future value of the company.
The reporter of Securities Daily found that among the 147 companies mentioned above, 11 companies, accounting for more than 5% of the total share capital, accounted for 7.48%; There are 27 companies whose reduction ratio is higher than 3% of the total share capital, accounting for 18.37%.
Among them, the company with the highest reduction proportion in the total share capital is Anhui Anli Material Technology Co.Ltd(300218) , and its two major shareholders plan to reduce their shares by as much as 12.25%. The proportion of shares to be reduced by Beijing Jiayu Door Window And Curtain Wall Joint-Stock Co.Ltd(300117) and Shenzhen Sinexcel Electric Co.Ltd(300693) is 8% and 7.37% respectively.
From the perspective of the reasons for the reduction, almost all the shareholders of the above companies reduce their holdings to meet their own financial needs, such as “personal fund use arrangement” and “shareholders\’ own fund needs”; If the reducing shareholder is an institutional investor, the reason for the reduction will also be expressed as “the needs of its own operation and development”. In addition, some shareholders directly indicated that they would reduce their holdings due to “foreign investment” and “repayment of loans”, such as Wanxun automatic control, Shenzhen Sinexcel Electric Co.Ltd(300693) . Among them, Shenzhen Sinexcel Electric Co.Ltd(300693) said in the announcement that the reason for the reduction is the shareholders\’ own capital needs. After further understanding, the reporter found that the main reason for the reduction also includes the shareholders\’ need to invest abroad.
“Although the specific situation of shareholders\’ capital arrangement or foreign investment direction is unknown, its large-scale reduction must be based on its own judgment on the future prospect of the fundamentals of the listed company. Investors should focus on the company’s future performance data and operate prudently.” Mr. Qin, general manager of Jinhua fund, said in an interview with Securities Daily.
Pan Helin believes that the type of shareholders who reduce their holdings can also be used as the basis for judging the company’s future fundamentals. The reduction shareholders can be divided according to whether they participate in the operation. In addition to the actual controller, the important shareholders participating in the operation belong to strategic investors. The investment is accompanied by strategic cooperation, and their large proportion of reduction may mean the end of strategic cooperation and release bad signals. The important investors who do not participate in the operation have a weak correlation with the control right of the listed company. The main reason for the reduction is the investment profit, which does not represent the view of the management, and has a relatively small impact on the stock price of the listed company. Therefore, the reduction of controlling shareholders has the greatest impact, strategic shareholders with business cooperation, followed by important shareholders, and financial investors have the least impact.
