On April 25, the A-share market made a significant adjustment. The reporter of the Securities Times noted that the number of repurchase announcements of listed companies and increase of shareholders’ holdings has increased significantly recently, and fund companies have also actively participated in self purchase to inject incremental funds into a shares, showing their confidence in the long-term healthy and stable development of China’s capital market.
The State Administration of industry and Commerce and the China Securities Regulatory Commission (SASAC) have issued a notice to further encourage listed companies to repurchase their shares. According to choice data, since March this year, more than 320 listed companies have issued repurchase plans, of which 11 listed companies have a maximum repurchase amount of more than 1 billion yuan; 75 companies have implemented repurchase, supporting the company’s share price with real gold and silver. In addition, since this year, more than 850 listed companies have implemented or completed repurchase, with a cumulative repurchase amount of 87.909 billion yuan, a significant increase compared with last year.
At the same time, many shareholders and management of listed companies have increased their holdings. According to choice data, as of April 25, a total of 98 listed companies have thrown out shareholder increase plans this year, involving 185 controlling shareholders, actual controllers or senior executives, and the lower limit of the cumulative increase amount is 6.323 billion yuan.
Especially since April, the willingness of major shareholders and executives of listed companies to increase their holdings has increased significantly. In terms of quantity, 32 listed companies issued shareholder increase announcements, involving 65 shareholders and senior executives. In terms of the increase amount, the proposed increase amount of Sichuan Road & Bridge Co.Ltd(600039) , Hengtong Logistic Co.Ltd(603223) , Luxshare Precision Industry Co.Ltd(002475) and other companies shall not be less than 100 million yuan. Among them, Sichuan Road & Bridge Co.Ltd(600039) , whose controlling shareholder Shudao Investment Group plans to increase its holdings by 500 million ~ 1 billion yuan, is the highest in April.
As an important participant in the capital market, fund companies have also made self purchases. According to the data, as of April 25, 63 fund companies had purchased by themselves during the year, with a total of 114 times, with a total amount of 1.884 billion yuan. In contrast, in the first four months of 2021, only 44 fund companies participated in self purchase, with a total amount of 1.255 billion yuan. In other words, the self purchase scale of fund companies has increased by 50% year-on-year this year.
From the perspective of self purchase and investment direction of fund companies, equity and hybrid funds account for 65.2% in total, indicating that fund companies still have full confidence in the equity market. According to the branch fund companies, the South Fund currently ranks first with the repurchase amount of 210 million yuan, and the repurchase amount of five funds such as Huatai asset management and ICBC Credit Suisse fund also exceeded 100 million yuan during the year.
In addition, a number of star fund managers have also purchased their own to convey confidence. For example, Cui Chenlong, the “double champion” of public offering in 2021 and the manager of Qianhai open source fund, invested 1.5 million yuan to purchase the three funds under his management, and Qiu Dongrong, the fund manager of Zhonggeng fund, purchased no less than 15 million yuan Huaxi Securities Co.Ltd(002926) research report believes that when the market falls to a certain extent or lasts for a period of time, the self purchase tide of public funds is often one of the signals to build the bottom of the market.
