Economic Observer reporter Huang Yifan On the evening of October 17, another 23 listed companies disclosed repurchase announcements.
On October 14, the Shanghai and Shenzhen Stock Exchanges optimized and improved the rules for repurchase and holdings, and solicited opinions from the public, aiming to further improve the institutional inclusiveness and implementation convenience of repurchase and holdings. In this context, a number of listed companies responded positively.
According to wind statistics, from the evening of October 14th to 16th, 74 companies in Shanghai and Shenzhen disclosed repurchase announcements. Among them, 14 companies issued repurchase plans, 8 repurchases were approved by the general meeting of shareholders, and 49 companies are implementing or have completed repurchases. Counting the 23 companies disclosed on October 17, within four days, the number of companies that disclosed repurchase announcements on the Shanghai and Shenzhen stock exchanges has reached 97.
In addition, according to the reporter’s statistics, since the evening of the 14th, the total limit of the repurchase funds proposed by companies with new repurchase plans has reached 5.096 billion yuan.
Among the new repurchase plans, there are many “big money” with an amount of hundreds of millions of yuan or even over one billion yuan. For example, Great Wall Motor plans to repurchase the upper limit of the capital at 1.8 billion yuan, Focus Media plans to repurchase shares at 400 million to 800 million yuan, and China Textile City plans to repurchase the lower limit of 410 million yuan.
It is worth mentioning that Yunda shares, Crystal Optoelectronics, Yahua Group, Akcome Technology and other four companies were proposed by the chairman to repurchase the company’s shares.
Taking Yunda shares as an example, on October 17, Yunda shares disclosed that it received the “Letter on Proposing to Buy Back the Company’s Shares” on October 14, 2022, from the chairman of the company, Nie Tengyun. The company stated that Nie Tengyun is based on its confidence in the sustainable and stable development in the future and its recognition of the company’s value. Considering that the company’s stock price has been sluggish recently, in order to enhance public investors’ confidence in the company, promote the company’s healthy and sustainable development, and ensure the company’s development strategy According to relevant laws and regulations, Nie Tengyun proposed that the company repurchase the company’s shares through centralized bidding transactions. Its proposal to repurchase 5 million to 7 million shares of the company with 100 million yuan in the next 12 months will promote the company to convene the board of directors or shareholders’ meeting as soon as possible to consider the repurchase of shares.
Yang Delong, managing director of Qianhai Open Source Fund, said, “Recently, listed companies have frequently repurchased and increased their holdings, and listed companies have repurchased and increased their holdings more frequently, which also shows that the current market has gradually fallen out of value. Management and shareholders have a better understanding of the operation of listed companies, and they are willing to increase their holdings at the current time, which also shows that the stock price is undervalued. And some policy adjustments on repurchase and holdings are also conducive to promoting these directors, supervisors and senior executives to increase their holdings. “
On October 14, the China Securities Regulatory Commission revised the Rules for Share Repurchase of Listed Companies and the Rules for the Management of the Shares and Changes of the Company Held by Directors, Supervisors and Senior Management of Listed Companies, etc. to solicit public opinions.
Rongzheng Group said, “Looking at the revision of the “Repurchase Rules”, we can see that the regulatory authorities are increasingly supporting the policy of listed companies to repurchase shares, lowering the repurchase threshold, and providing repurchase for listed companies. It provides a more convenient channel.” Rongzheng Group said that at the same time, the draft of the new regulations has adjusted the implementation conditions for the repurchase of newly listed companies, which is important for newly listed companies to maintain the company’s market value, protect the interests of small and medium investors, and even implement equity Incentives, so as to strive to achieve common prosperity and provide better policy support; in addition, the draft of this policy has a more reasonable and clear definition of share issuance, which is expected to be conducive to the rational financing of listed companies; The definition of the “window period” in the “Repurchase Rules” is more in line with the current market demand, and provides a more convenient time arrangement for the company to better implement share repurchase.
“This system optimization helps improve the capital market’s ability to serve the real economy, which is conducive to improving market sentiment and stabilizing the market in the short term. Although listed companies’ increased holdings and repurchases do not have an immediate effect, they do release positive effects. The signal, especially when the market is in a downturn, will play a significant boost.” Yang Delong said.
It is worth mentioning that the CICC strategy analysis team pointed out that the annual repurchase amount of A shares in 2021 has reached a record high. According to Wind data, judging from the repurchase situation of A-share listed companies, with the gradual improvement of the repurchase system in recent years, the number and scale of A-share share repurchases have increased significantly. Since 2022, A-share listed companies have repurchased 1,510 times, involving 1,100 listed companies, with a repurchase amount of 158.9 billion yuan, an increase of 85.5% over the same period last year.Return to Sohu, see more
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