Recently, the capital market has fluctuated greatly, and the regulatory authorities have made intensive calls to stabilize the market and expectations. From the Symposium of institutional investors held by the CSRC, it stated that we should stimulate the market vitality and potential and further improve the market toughness; In response to financial market fluctuations before the central bank’s trading, it is clear that it will increase the support of prudent monetary policy to the real economy, maintain reasonable and abundant liquidity, and create a good monetary and financial environment. Regulators take multiple measures to promote the smooth and healthy operation of the capital market.
Yang Chang, chief analyst of Zhongtai Securities Co.Ltd(600918) Research Institute, said that in the short term, despite the repeated impact of the epidemic and the periodic disturbance of China’s economy, it can be expected that with the gradual control of the epidemic, including policies and measures such as real estate, infrastructure and consumption, there is still hope to promote the stable and upward operation of China’s economy. In the long run, China’s economy has always been the core driving force driving global economic growth, which has also laid a solid foundation for China’s capital market to build global competitiveness.
regulation intensive voice stabilization market
Recently, the A-share market has fluctuated downward, which has attracted extensive attention from Chinese and foreign investors, and the securities regulatory authorities have acted frequently. From the speech delivered by Yi Huiman, chairman of the CSRC, at the third member congress of the China Association of listed companies on “working hard to meet difficulties and strive to create a new situation for the high-quality development of listed companies”, to the notice on further supporting the healthy development of listed companies jointly issued by the CSRC, the SASAC of the State Council and the all China Federation of industry and Commerce on April 11, and then to the guidelines on the management of investor relations of listed companies issued by the CSRC, And on April 21, the CSRC held a symposium for institutional investors. On April 22, the CSRC conveyed and implemented the spirit of the special meeting of the financial commission of the State Council, saying that it should improve the market resilience and promote the stable and healthy operation of the capital market.
Not only the CSRC, but also the financial commission of the State Council held a special meeting. At the meeting, the bank, the two sessions and the one bureau analyzed and judged the former economic and financial situation and studied and deployed the key work in the next stage. The central bank said that it would further strengthen its support for the real economy to maintain market stability and economic stability; The China Banking and Insurance Regulatory Commission (CIRC) said that it had taken 10 major measures to further enhance and improve the supply of financing, including strengthening the rescue of market players and improving the level of financial services for new citizens; The meeting of the State Administration of foreign exchange said that it is necessary to strengthen the analysis, judgment and expectation guidance of the economic and financial situation, strengthen the “macro prudence + micro supervision” management of the foreign exchange market, and maintain the steady operation of the foreign exchange market and the national economic and financial security.
All of the above reveal the ardent hope of the regulatory authorities to promote the high-quality development of the capital market and the urgent requirements to further improve the resilience of the capital market.
The current round of decline in the capital market was caused by many factors, such as the multi-point spread of the epidemic, the conflict between Russia and Ukraine, and the Fed’s interest rate hike, which created a series of uncertain risks. Zuo Xiaolei, the former chief economist of galaxy securities, said that the current situation of epidemic prevention and control is still severe. The market is worried that the factors of spreading the epidemic will further affect the economy. The impact of the Russian Ukrainian conflict on the market continues to accumulate. The shift of the Federal Reserve’s monetary policy interfered with the mood of investors and triggered stock market fluctuations.
“However, at present, China’s economic fundamentals are good, the potential for endogenous economic growth is huge, and substantial progress has been made in preventing and resolving financial risks.” Zuo Xiaolei said that the financial system has coordinated the epidemic prevention and control and economic and social development, and the problems such as logistics interruption have been gradually solved under the guidance of the national level to minimize the impact of the epidemic on economic and social development. The rectification work of large platform companies is advancing steadily to promote the healthy development of platform economy.
China Minsheng Banking Corp.Ltd(600016) chief researcher Wen Bin said that monetary policy is expected to continue to be stable in the future, and there is still room and necessity for reducing reserve requirements and interest rates. At the same time, the implementation of structural monetary policy tools will be strengthened, focusing on supporting key areas and weak links, especially helping industries seriously affected by the epidemic, small, medium-sized and micro enterprises and individual industrial and commercial households to tide over difficulties, maintain market players and stabilize the basic economic situation.
market participants actively repurchase
All parties involved in the market are actively maintaining the stability of the market. Wind data shows that as of April 26, 448 listed companies have announced the completion of repurchase or released repurchase plans during the year. Among them, more than 50 listed companies have issued repurchase announcements since April. From the perspective of repurchase purpose, most companies say that repurchase is to maintain the share price of the secondary market and be optimistic about the long-term development of the company.
Hangzhou Haoyue Personal Care Co.Ltd(605009) announcement indicates that the total amount of funds to be repurchased shall not be less than 30 million yuan (inclusive) and not more than 60 million yuan (inclusive); The price of the shares to be repurchased shall not exceed 60 yuan / share; The shares to be repurchased are used to cancel and reduce the company’s registered capital and equity incentive plan Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) said that the company plans to buy back shares for the later implementation of employee stock ownership plan or equity incentive. The total amount of funds to be used for repurchase this time is 100 million yuan to 200 million yuan, and the repurchase price shall not exceed 22 yuan / share Kbc Corporation Ltd(688598) said that it planned to repurchase shares of 80 million yuan to 100 million yuan, and the repurchase price would not exceed 300 yuan / share.
At the same time, important shareholders of fund companies and listed companies also joined the ranks of self purchase. According to wind data, as of April 25, 63 fund companies had self purchased during the year, a total of 114 times, with a total amount of 1.884 billion yuan. 205 listed companies disclosed plans for shareholders to increase their holdings, including 185 controlling shareholders, actual controllers or senior executives, with a cumulative lower limit of 6.323 billion yuan.
Citic Securities Company Limited(600030) chief economist Mingming believes that the increase of repurchase and shareholding increase cases of listed companies is mainly due to two reasons: first, the share price of some companies has fallen into the value range, which is the appropriate time point for long-term allocation of funds to enter the market, so the scale of industrial capital shareholding increase began to expand; Second, the repurchase of listed companies helps to protect market confidence and protect the rights and interests of stock investors.
Founder Securities Co.Ltd(601901) the latest research report points out that repurchase has an obvious effect on the improvement of the company’s market value, especially the repurchase in the form of share repurchase cancellation and for the purpose of market value management, which is a way to directly repay shareholders. After the release of the repurchase plan, the share price of undervalued companies has a greater upward range, and the trend in the short term is better than that of overvalued companies.
