Since the beginning of this year, the A-share market has continued to fluctuate and adjust, but industrial capital has performed positively, with frequent actions such as repurchase and increase in holdings.During the year, the number of listed companies repurchased and increased by important shareholders exceeded that of the same period last year, of which the total repurchase amount of the company was nearly 60 billion yuan.
Experts said that industrial capital continues to actively repurchase and increase its holdings, whether it is for enterprise development or boosting confidence in the capital market, it has a positive effect.But for investors, the most fundamental thing is to be based on the fundamentals of the company and beware of "flickering" investment holdings.The regulators should also strictly supervise to prevent some company shareholders from "repurchasing with the left hand and reducing their holdings with the right hand" and using news to cash out.
The number of repurchases and holdings increased over the same period last year
On the evening of July 6, a number of companies in the A-share market released plans for repurchase and increase in holdings.
Tianshan Aluminum announced that the company plans to use its own funds to repurchase the company's shares in a centralized bidding transaction, which will be used to implement equity incentives or employee stock ownership plans. , the repurchase price shall not exceed 10.4 yuan per share; Espressif announced that it intends to use the company's own funds of not less than 30 million yuan and not more than 60 million yuan to repurchase the company's shares for employee shareholding or Equity incentive plan, the repurchase price does not exceed 120 yuan / share.
AGCO announced that as of July 5, 2022, AGCO, the controlling shareholder of the company, has accumulated 161,084 shares of the company through centralized bidding through the Shanghai Stock Exchange trading system, accounting for 0.27% of the company's total share capital. It is 4.0877 million yuan, which has exceeded the lower limit (4 million yuan) of the planned amount of this increase.The implementation of this increase plan has not yet been completed, and the increase subject will continue to increase its shareholding in the company within the implementation time of the increase plan in accordance with the relevant increase plan.
Since the beginning of this year, the A-share market has continued to fluctuate and adjust, but industrial capital has chosen to actively enter the market, and the repurchase and increase of holdings have continued.Wind data shows that 981 A-share companies have issued repurchase plans since the beginning of this year, significantly more than the same period last year (839).Judging from the repurchase that has been implemented, a total of 781 listed companies in the A-share market repurchased their shares during the year, which also exceeded the same period last year (648). The total repurchase amount during the year was 59.083 billion yuan, approaching the 60 billion yuan mark.
Judging from the repurchase amount, large-scale repurchases by listed companies also appear frequently.Since the beginning of this year, 129 listed companies have repurchased more than 100 million yuan, mostly in the pharmaceutical and biological, electronic and chemical industries. 9 listed companies have repurchased more than 1 billion yuan. Among them, Hengli Petrochemical, SF Holding, BYD Among the top three, the repurchase amount was 2 billion yuan, 1.899 billion yuan, and 1.810 billion yuan respectively.
From the perspective of the increase in holdings, according to Wind data, a total of 212 companies in the A-share market issued plans to increase their major shareholders during the year, which also exceeded the same period last year (165). Many shareholders chose to increase their holdings multiple times.The shareholders of China Mobile, SAIC and Dongfang Shenghong all plan to increase their holdings by more than 1 billion yuan, and China Mobile's shareholder China Mobile Communications Group Co., Ltd.
Market confidence continues to improve
In the opinion of industry experts, since this year, the repurchase and increase of A-share companies have increased significantly. There are many reasons for this.
Chen Li, chief economist of Chuancai Securities and director of the research institute, said that since the beginning of this year, the number of A-share companies that have chosen to buy back and increase their holdings has increased compared with last year.The increase in buybacks is mainly due to the company's abundant cash flow and relatively low share price.On the one hand, from January to April this year, due to the disturbance of various factors such as the epidemic and external reasons, the overall decline of A-shares was relatively large, and the valuation of many listed companies fell to a relatively low level. Therefore, some companies chose to repurchase shares; on the other hand, Against the backdrop of the Fed's tightening monetary policy, the domestic monetary policy has always remained moderately sufficient, and the overall profit situation of most listed companies is still good, laying the foundation for their repurchase.Especially in the biomedical, electronics, chemical and other industries, the profit situation is good and the cash flow is abundant. In the first half of the year, the market fell sharply and the company has no short-term expansion plan. The company's use of funds to repurchase shares also helps. Stabilize stock prices and enhance investor confidence.
Economist and founding partner of Yuntai Capital, Fu Lichun, said that repurchase and increasing holdings are normal market behaviors, but since the beginning of this year, the market has fluctuated significantly, and some industries have made a sharp correction, which has greatly improved the investment attractiveness of A-shares, and the attitude of industrial funds entering the market. positive.At the same time, some companies repurchased and increased their holdings to boost investor confidence and support the company's stock price.
Experts said that industrial capital continues to actively repurchase and increase its holdings, whether it is for enterprise development or boosting confidence in the capital market, it has a positive effect.
Investors beware of "flickering" buybacks
Since the beginning of this year, the regulators have actively encouraged the repurchase and increase of industrial capital.After the special meeting of the State Council Finance Committee on March 16, the CSRC Party Committee quickly held an enlarged meeting to convey the spirit of the study meeting.The meeting proposed to give full play to the role of the market's endogenous stabilization mechanism, vigorously promote the quality improvement of listed companies, encourage listed companies to increase their holdings and repurchase, and guide fund companies to purchase shares by themselves.On April 11, the China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission and the All-China Federation of Industry and Commerce jointly issued a notice on further supporting the healthy development of listed companies, proposing to encourage listed companies to repurchase shares for equity incentives and employee stock ownership plans.At the exchange level, it is also studying and promoting the facilitation of market stabilization behaviors such as repurchase and holding increase of listed companies, and continues to support and encourage asset management institutions and personnel to purchase by themselves, and cooperate with long-term investors to enter the market.
For some listed companies, the repurchase price obviously does not match the company's market price, the repurchase action is delayed, and the actual repurchase amount is quite different from the plan. .
On June 6, Dangda Group announced that due to the failure to complete the repurchase plan, the company and its current chairman Ma Xiang and Huang Jihong were criticized by the Shanghai Stock Exchange.The disciplinary decision of the Shanghai Stock Exchange shows that on May 20, 2020, the company plans to repurchase the company's shares through centralized bidding transactions, and the total amount of repurchased shares is not less than 500 million yuan (inclusive) and not more than 1 billion yuan (inclusive). , during the period, the company applied for an extension of the 6-month repurchase implementation period, but until the end of the implementation period, the company paid a total of 250 million yuan for the repurchase of shares, which only accounted for 50.04% of the lower limit of the repurchase plan. buyback program.
Fu Lichun pointed out that investors should be especially vigilant about this kind of cheating repurchase and increase in holdings."Generally speaking, repurchase and increase of holdings indicate that the major shareholders or management of listed companies have confidence in the development of the company, but for investors, this is only a reference indicator. The most fundamental thing is to base on the fundamentals of the company. In-depth research and professional knowledge reserve.”
Chen Li also believes that for investors, the company's repurchase can be used as a reference indicator, but the decision of the stock price often does not depend on a single factor, and needs to be comprehensively considered in combination with a variety of actual situations."Regulators should strictly supervise repurchase with the right hand to prevent shareholders from 'repurchasing with the left hand and reducing their holdings with the right hand' and using the news of the repurchase to cooperate with shareholders to cash out."
(Editor in charge: Hua Qingjian)
