On April 26, the A-share market continued to adjust. It is worth noting that recently, there have been frequent announcements of repurchase of listed companies and increase of shareholders’ holdings, and fund companies have also actively made self purchase, and multiple funds have “made moves” to stabilize market confidence.
According to the data, as of the press time of April 26, 511 listed companies have issued repurchase plans this year. Since April, the repurchase of listed companies has been hot, and nearly 200 listed companies have issued repurchase plans. On the evening of April 25, 36 listed companies including Aier Eye Hospital Group Co.Ltd(300015) , Winner Technology Co.Inc(300609) , Ginlong Technologies Co.Ltd(300763) , Transfar Zhilian Co.Ltd(002010) and others collectively disclosed their stock repurchase plans. Announcement of the company’s share repurchase on the same day. The announcement shows that on April 25, 2022, the Company repurchased 750000 shares for the first time through centralized bidding transaction, and the proportion of repurchased shares in the total share capital of the company was 0.01%. The highest transaction price was 30.18 yuan / share, the lowest price was 29.71 yuan / share, and the total amount paid was 223852 million yuan.
From the perspective of the purpose of share repurchase, it is mainly used for employee stock ownership plan or equity incentive plan; From the perspective of repurchase purpose, many 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; In terms of amount, many listed companies choose to use “real gold and silver” to support the company’s share price. According to the preliminary statistics of the reporter of the economic information daily, 446 listed companies have implemented repurchase during the year. During the period, the number of shares repurchased was 2.551 billion, and the total repurchase amount during the period was 27.966 billion yuan, a sharp increase compared with last year. Among them, Hengli Petrochemical Co.Ltd(600346) , S.F.Holding Co.Ltd(002352) and other 62 listed companies have repurchased more than 1 billion yuan this year, and Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Zhejiang Chint Electrics Co.Ltd(601877) , 360 Security Technology Inc(601360) and other 62 listed companies have repurchased more than 100 million yuan this year. In addition, in the repurchase plan released this year, the number of repurchases is expected to reach 34.292 billion shares.
At the same time, many shareholders and management of listed companies have increased their holdings. According to the data, as of the time of publication, a total of 105 listed companies have launched shareholder increase plans this year, involving 205 controlling shareholders, actual controllers or senior executives of the company, with a cumulative minimum amount of increase of 6.659 billion yuan.
As institutional investors, fund companies have also made self purchases. According to the data, as of the time of publication, 63 fund companies had made self purchase during the year, and the scale of self purchase increased by 50% year-on-year compared with last year.
China Securities Co.Ltd(601066) said that on the one hand, the policy bottom and credit bottom may have been roughly confirmed, and the subsequent profit bottom will be gradually completed in the medium term; On the other hand, market valuation and sentiment indicators have also entered the bottom area. Although there is still the possibility of further decline, the space is relatively limited. Therefore, from the medium-term perspective, although the market bottom grinding process may continue to repeat, investors do not need to be too pessimistic and should patiently wait for the market to complete the construction of U-shaped bottom. Guosheng securities also believes that from the perspective of long-term allocation, A-Shares have entered the deep value range.
