Following yesterday’s decline of the three major A-share indexes, the Shanghai index rose and fell again in the afternoon, falling to 2900 points. In the case of rising investor risk aversion, many listed companies choose to buy back the company’s shares, while major shareholders choose to increase their holdings of the company’s shares.
Since this year, the A-share market has been increasing its holdings and repurchases, and the number of stock repurchases is nearly four times that of the same period last year. Just in April, the CSRC, the SASAC and the all China Federation of industry and Commerce issued a notice on further supporting the healthy development of listed companies, which mentioned that they support qualified listed companies to repurchase for stabilizing the stock 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 in case of a sharp decline in the company’s shares.
A-Shares fell, and listed companies repurchased and increased their own shares
Reporters today found that Shanghai Bright Power Semiconductor Co.Ltd(688368) , Beijing Tongtech Co.Ltd(300379) , Jiangsu New Energy Development Co.Ltd(603693) , Sichuan New Energy Power Company Limited(000155) and many other listed companies released plans to increase their shares in the company.
If Xia Feng, a shareholder and director of Shanghai Bright Power Semiconductor Co.Ltd(688368) 5% or more, intends to increase his holdings of the company’s shares by means permitted by the trading system of Shanghai Stock Exchange within 6 months from today (April 26), the total amount of increase shall not be less than 20 million yuan and not more than 30 million yuan Beijing Tongtech Co.Ltd(300379) actual controller, chairman and general manager Huang Yongjun, director, deputy general manager, chief financial officer and Secretary of the board of directors Xu Shaopu plans to increase the company’s shares with self owned or self raised funds within 6 months from May 5, with a total increase of no less than 30 million yuan and no more than 50 million yuan. In addition, Jiangsu Guoxin Corp.Ltd(002608) plans to increase the company’s shares from April 26 to December 31, with an increase of no less than 250 million yuan and no more than 500 million yuan. Meanwhile, Sichuan energy investment, the Sichuan New Energy Power Company Limited(000155) controlling shareholder, plans to increase the company’s shares with its own funds within six months from April 26, and the number of shares to be increased is no less than 22138900 and no more than 29518500.
The reporter is concerned that recently, listed companies such as Hangzhou Dptech Technologies Co.Ltd(300768) , Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , Henan Hengxing Science & Technology Co.Ltd(002132) and others have announced relevant share repurchase plans, and Shenzhen Jinjia Group Co.Ltd(002191) , Jiangsu Hengrui Medicine Co.Ltd(600276) , Runner(Xiamen) Corp(603408) and others have also directly purchased shares.
since this year, the number of share repurchases has been nearly four times that of the same period last year
Careful investors are not difficult to find that the market has fluctuated frequently since this year. Under the condition of insufficient investor confidence, listed companies have increased their holdings and repurchases. According to incomplete statistics, since this year, there have been more than 400 repurchase plans or implementation behaviors of a shares, nearly four times that of the same period last year. Among them, China Vanke Co.Ltd(000002) , Gf Securities Co.Ltd(000776) , Jiangsu Hengrui Medicine Co.Ltd(600276) , Yonyou Network Technology Co.Ltd(600588) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) and other listed companies plan to repurchase more than 1 billion yuan. At the same time, since this year, nearly 100 listed companies have announced plans to increase their shareholders’ holdings, involving about 200 controlling shareholders, actual controllers and senior executives. The lower limit of the cumulative increase in holdings has exceeded 6 billion yuan, and the willingness to increase Holdings has been more obvious since April.
On April 20, the listed Hunan enterprise Willfar Information Technology Co.Ltd(688100) received the notice from the controlling shareholder of the company, Weisheng group. Based on the confidence in the future development of the company and the recognition of the long-term investment value of the company, Weisheng group plans to increase its shares in the company by means allowed by the trading system of Shanghai Stock Exchange (including but not limited to centralized bidding, block trading, etc.) within 6 months from April 20, with a total increase of no less than 2.5 million shares and no more than 5 million shares. As of April 21, Weisheng group had increased its holdings of 1.598 million shares, accounting for 0.32% of the total share capital of the company, which has exceeded 50% of the lower limit of the number range of this increase plan.
convey confidence and encourage listed companies to buy back and major shareholders to increase their holdings
Whether it is the repurchase of listed companies or the increase of shareholders’ holdings, it mostly conveys the company’s confidence in the future to the market. For example, Xia Feng, the shareholder and director of Shanghai Bright Power Semiconductor Co.Ltd(688368) 5% or more, increased his shareholding based on his confidence in the future development of the company and his recognition of the long-term investment value of the company; Huang Yongjun, the actual controller, chairman and general manager of Beijing Tongtech Co.Ltd(300379) and Xu Shaopu, the director, deputy general manager, chief financial officer and Secretary of the board, based on his confidence in the future performance of the company and the long-term investment value of the company’s shares, in order to better promote the sustainable, stable and healthy development of the company, Maintain the stability of the capital market and the interests of the company’s investors.
According to the public information on the official website of the CSRC, just this month, the CSRC, SASAC and the all China Federation of industry and Commerce issued a notice on further supporting the healthy development of listed companies. Among them, it is mentioned that listed companies are encouraged to repurchase shares for equity incentive and employee stock ownership plans, and eligible listed companies are supported to repurchase shares in order to stabilize the stock 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.
