Statistics show that as of April 27 this year, a total of 230 listed companies in Shanghai and Shenzhen have been increased by important shareholders. Based on the reference market value at the time of the increase, the total increase reached 27.5 billion yuan. Among them, the cumulative holdings of important shareholders of 35 listed companies exceeded 100 million yuan.
Specifically, there are ordinary shareholders, actual controllers, the largest shareholder holding more than 5% and Dong Jiangao who knows the most about the operation of listed companies. Among them, senior executives of listed companies are the main force of increasing holdings. Statistics show that since this year, a total of 186 listed companies have obtained executive holdings, accounting for 80.87% of the total holdings of listed companies.
For the reasons for the increase, the reasons given by Chinese listed companies are roughly the same. Most companies disclosed that the increase object mainly decided to increase the shares of the company based on the confidence in the company’s future development prospects and the recognition of growth value.
Pan Helin, CO director and researcher of digital economy and financial innovation research center of International United Business School of Zhejiang University, said in an interview with Securities Daily, “The most important significance of increasing shareholders’ holdings lies in the binding of interests. The interests of major shareholders and minority shareholders are the same. The major shareholders and actual controllers holding a higher proportion of shares are more confident and active in the operation of the company. For listed companies with dispersed equity and no actual controllers, increasing shareholders’ holdings can further clarify the controllers and solve the problem of the absence of managers in some listed companies.”
For the increase of senior executives’ holdings in listed companies, pan Helin said, “senior executives’ holdings can be bound with the interests of listed companies and minority shareholders, optimize the enterprise business structure and improve the enthusiasm of senior executives, which is beneficial to the future development of listed companies. The way of senior executives’ active increase of holdings is more effective than the way of stock incentive, which is conducive to boosting the confidence of investors in the capital market.”
The recent market fluctuation adjustment, the reporter noted that a number of listed companies have played the “overweight card”.
On the evening of April 26, Suzhou Jinfu Technology Co.Ltd(300128) announced that Taixing Zhicheng Industrial Investment Fund (limited partnership), the controlling shareholder of the company, plans to increase its shares in the company by means of centralized bidding or block trading, with an increase amount of no less than 60 million yuan and no more than 100 million yuan. The implementation period of the increase plan is from April 27, 2022 to October 26, 2022.
Coincidentally, Suzhou Medicalsystem Technology Co.Ltd(603990) also disclosed a plan to increase the shareholding of senior executives on that day. Chen Jiansong, the general manager of the company, plans to increase the shares of the company from May 5, 2022 to November 4, 2022, with an increase of no less than 5 million yuan and no more than 10 million yuan.
The reporter found that from the evening of April 25 to the evening of April 26, a total of 14 Listed Companies in Shanghai and Shenzhen disclosed their shareholding increase plans, involving the actual controllers, directors, supervisors and senior executives of the company.
An executive of a listed company in Jiangsu, who asked not to be named, said in an interview with the Securities Daily, “we have noticed the share increase plans released by other companies recently, and there are also relevant considerations. If subsequent companies have a repurchase share increase plan, they will fulfill the disclosure obligation in time.”
As of press time, the army of A-share holdings is still expanding. On the evening of April 27, a number of companies, including Xlinmen Furniture Co.Ltd(603008) , Apt Medical Inc(688617) , Taihe intelligence, Sri new materials, Ikd Co.Ltd(600933) and others, successively released plans to increase the shareholding of shareholders, actual controllers and senior executives holding more than 5%.
“Whether ordinary shareholders, major shareholders or senior executives increase their holdings, it has always been understood by the market as a positive signal. Recently, there has been a correction in the market, and it can also be understood that enterprises’ protect the market ‘by increasing their holdings.” Kuang Yuqing, the founder of lens research, told the Securities Daily, “shareholders and executives actively increase their holdings of shares in listed companies and tie their interests with the interests of minority shareholders, which can be said to be releasing the strongest signal.”
