Financial Associated Press, October 22 (Editor Lu Lu)Recently, A-shares have ushered in a wave of repurchase by listed companies. According to Choice data, 13 listed companies have issued repurchase announcements since October.
Among the 13 listed companies that issued repurchase announcements this month, there are 8 main board companies, 4 companies on the Science and Technology Innovation Board, and only 1 company on the Growth Enterprise Board.
In terms of the repurchase amount, there are 2 listed companies with the highest repurchase amount in this wave, namely Yahua Group and Wasion Information, with a repurchase amount of up to 300 million yuan; followed by Oupai Home Furnishing, with a repurchase amount The upper limit is 250 million yuan; the repurchase amount is less for Mugao Di, and the repurchase amount is only 15 million yuan to 30 million yuan.
After the announcement of the buyback, the performance of the stock prices of the various companies was wildly different.
On October 13, the Science and Technology Innovation Board company Wasion Information disclosed the repurchase plan. The total amount of funds to repurchase shares shall not be less than RMB 150 million (inclusive) and not more than RMB 300 million (inclusive).
After the announcement was made, the company’s stock price experienced a volatile upward trend.What’s weird is that on October 12, the day before the repurchase announcement, Wasion Information’s stock price rose 7.8% that day.
In addition, Sanxia Tourism and Mugaodi both rose by more than 3% on the day after the announcement of the repurchase.
Different from the stock price rise after the above-mentioned companies announced the repurchase, the stock prices of Yahua Group and OPPEIN fell after the announcement of the repurchase. On the evening of October 16, Yahua Group issued a reminder announcement on the chairman’s proposal to repurchase the company’s shares. The total amount of funds for the repurchase of shares shall not be less than RMB 200 million (inclusive) and no more than RMB 300 million (inclusive). In the 5 trading days after the announcement, the stock fell by 3.61%, and there were 4 consecutive overcasts in the last 4 trading days.
On the evening of Thursday, OPPEIN released a reminder announcement on receiving a proposal from the controlling shareholder to repurchase the company’s shares. The total repurchase funds should not be less than RMB 125 million (inclusive) and no more than RMB 250 million (inclusive). It is worth mentioning that under the news of the repurchase, the stock price fell by 5.35% on Friday, and the stock price hit a new low in nearly 2 years.
The repurchase of shares by a number of listed companies this month may be related to regulatory changes to repurchase rules. On the news, on October 14, the China Securities Regulatory Commission issued an announcement: It is planned to revise and disclose to the public the “Rules for the Share Repurchase of Listed Companies” and the “Management Rules for the Shares of the Company Held by Directors, Supervisors and Senior Management of Listed Companies and Their Changes”. The purpose of soliciting opinions is to actively safeguard the company’s investment value and the rights and interests of minority shareholders, so as to better meet the actual market conditions and the company’s needs.
Regarding the impact of the revision of the “Repurchase Rules”, Zheshang Securities stated that the revision of the repurchase rules will 1) lower the threshold for triggering repurchase and give listed companies greater repurchase flexibility and autonomy; 2) adjust the new The conditions for the implementation of repurchase by listed companies are more in line with the actual situation in the initial stage of listing of new shares; 3) Reasonable definition of share issuance is conducive to supporting the reasonable financing needs of listed companies; 4) Optimizing the window period arrangement is more conducive to the implementation of repurchase to maintain the company value and shareholder equity.
In addition, Zheshang Securities pointed out that,Repurchase rule revisions tend to come at market bottoms.Reviewing the historical evolution of the revision of my country’s repurchase rules: Since the official release of the “Administrative Measures for the Repurchase of Public Shares by Listed Companies” in 2005, the regulatory authorities have successively issued Several rounds of revisions were carried out in 2018, and the timing of policy adjustment mostly coincided with the market trough period. The promulgation and implementation of the policy accompanied the gradual stabilization and recovery of the market, suggesting that the supervision aims to release positive policy signals by regulating repurchase behavior and lowering the threshold for repurchase.