Title: Companies Continue Buybacks and Accumulate Holdings, Inject Confidence into the Market
Since the beginning of the year, the market has been witnessing a wave of buybacks and accumulation of holdings, indicating a confident injection of real gold and silver into the market. According to Tonghuashun statistics, 46 companies have announced repurchase plans, with 28 of them setting repurchase limits of 100 million yuan or more. Additionally, 26 companies have disclosed shareholding increase plans.
Company Nine has initiated the largest buyback, announcing plans to repurchase 300 million to 500 million yuan, with the repurchase price not exceeding 58 yuan per share, which is more than double the current price. Hisense Home Appliances and Beingmate top the upper limit of repurchase amounts during the year with 376 million yuan and 300 million yuan respectively.
It is noteworthy that Hisense Home Appliances launched both a buyback plan and an employee stock ownership plan, resulting in a more than 5% increase in stock value. With more than 300 companies implementing buybacks this year, the buyback amount has exceeded 10 billion yuan. Additionally, major shareholders and company executives are also planning to increase their holdings. Rongsheng Petrochemical announced that the controlling shareholder plans to increase its holdings by 1 billion to 2 billion yuan.
Yang Delong, the chief economist of Qianhai Kaiyuan, highlighted the significance of the buybacks, stating that they convey recognition of the company’s intrinsic value. However, an executive from a private equity fund in Shenzhen recommended that repurchased shares should be directly canceled to increase earnings per share and stimulate stock prices even more.
The China Securities Regulatory Commission’s data showed a significant increase in the number and amount of implementation of buybacks and holding increases, indicating a positive market trend.
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