With "real gold and silver" to boost market confidence, the plans for share buybacks and increases by A-share listed companies and their related progress are being continuously and densely disclosed. Wind data shows that as of the time of the journalist's manuscript, nearly 2000 repurchase plans have been implemented this year, involving more than 1,400 companies, among which more than 340 companies have completed repurchase amounts exceeding 100 million yuan. At the same time, to support the stable development of the capital market with practical actions, while waiting for the business details to be released, many banks are also actively preparing for the stock repurchase and increase loan business by steadily advancing various preparations for意向 customers.
The repurchase and increase tide in the fourth quarter continues
In the first week after the National Day holiday, according to statistics from Hongchou Investment, a total of 443 repurchase-related announcements were issued in the A-share market, involving 432 companies. Looking at the proportion of share repurchases, there are 16 companies with a share repurchase ratio of more than 5% of the total share capital; there are 50 companies with a share repurchase ratio of more than 3% of the total share capital; there are 251 companies with a share repurchase ratio of more than 1% of the total share capital. In terms of the industries covered, the top five industries with the most announcements are capital goods, materials Ⅱ, technology hardware and equipment, pharmaceutical biotechnology and life sciences, and semiconductors and semiconductor production equipment. Looking at the purpose of the repurchase, the number of repurchase announcements for the purpose of implementing equity incentives or employee shareholding plans is the highest, accounting for 58.47%; the number of repurchase announcements for the purpose of market value management is the second, accounting for 22.57%; the total number of active repurchase announcements is 359, accounting for 81%.
In terms of scale, the leading repurchase amount is Guangdian Measurement, which announced a proposed repurchase fund total of 200 million yuan to 400 million yuan, with a repurchase price cap of 18 yuan, accounting for 1.91% to 3.81% of the company's total share capital. The shares repurchased this time will be used entirely for the convertible bonds that the company plans to issue in the future. China Eastern Airlines previously announced that based on confidence in the company's future development prospects and recognition of the company's long-term value, combined with factors such as the company's operating conditions and financial status, in order to enhance market confidence, improve fundraising efficiency, increase earnings per share, and reflect the importance of returning to investors, the company plans to use its own funds to repurchase some of the company's social public shares through centralized bidding transactions, for the purpose of reducing the company's registered capital. The A-share repurchase amount is 250 million yuan to 500 million yuan, with a repurchase price cap of 4.39 yuan per share.
In addition, the number of listed companies that have disclosed their repurchase plans for the first time is also gradually increasing, with many plans exceeding tens of millions of yuan. For example, Jiuli Special Materials, Haohai Bioscience, Del Future, GAC Group, etc., plan to repurchase no more than 300 million yuan, 200 million yuan, 120 million yuan, and 109 million yuan, respectively.
In terms of increases, many listed companies have also successively disclosed important shareholder increase plans. For example, on October 16, Sailis announced that its backbone team implemented an increase plan starting from August 29 this year, with a planned increase amount of not less than 100 million yuan and not more than 200 million yuan. As of October 15, the team had increased 1.66 million shares through centralized bidding transactions, accounting for 0.11% of the company's total share capital, with a total increase amount of 150 million yuan.
Zhou Maohua, a macro researcher at the financial market department of China Everbright Bank, said that the repurchase and increase of shares by listed company shareholders help to optimize the company's capital structure, improve the financing ability and financial indicators of listed companies, and enhance investor confidence.
The leading role of leading enterprises is significant
In the continuous repurchase and increase of listed companies, the positive actions of leading enterprises have also played a good leading role while being recognized by the market.
China Merchants Group recently disclosed that its eight listed companies, including China Merchants Shekou, China Merchants Port, China Merchants Shipping, China Merchants Highway, China Foreign Shipping, Liaoning Port Shares, China Merchants Nanyou, and China Merchants Jiyu, have disclosed repurchase or increase plan announcements, with a total amount cap of nearly 5 billion yuan.Specifically, China Merchants Shekou, China Merchants Port, China Merchants Shipping, China Merchants Highway, Sinotrans, and China Merchants Property Services have announced share repurchase plans. The maximum repurchase price for shares is set at no more than 150% of the average trading price of the company's stock in the 30 trading days before the board of directors passed the resolution to repurchase shares. The repurchased shares are intended to be fully canceled in the future, thereby reducing the company's registered capital.
Among them, China Merchants Shekou plans to repurchase a total amount of 351 million to 702 million yuan, China Merchants Port plans to repurchase a total amount of 195 million to 389 million yuan, China Merchants Shipping plans to repurchase a total amount of 222 million to 443 million yuan, China Merchants Highway plans to repurchase a total amount of 310 million to 618 million yuan, Sinotrans plans to repurchase a total amount of 271 million to 542 million yuan, and China Merchants Property Services plans to repurchase a total amount of 78 million to 156 million yuan.
In addition, three other listed companies under China Merchants Group—Sinotrans, Liaoning Port Co., Ltd., and China Merchants South Oil have simultaneously announced major shareholder share increase plans. Sinotrans plans to increase its holdings with an amount of 250 million to 500 million yuan, with a maximum purchase price of 7.43 yuan per share; Liaoning Port Co., Ltd. plans to increase its holdings with an amount of 250 million to 500 million yuan, with a maximum purchase price of 2.06 yuan per share; China Merchants South Oil plans to increase its holdings by no less than 1% and no more than 1.72% of the total share capital, with a maximum purchase price of 4.67 yuan per share. Industry insiders believe that the repurchase or increase plans of the eight listed companies of China Merchants Group this time demonstrate the company's confidence in its own value and are conducive to helping achieve high-quality development.
Not only China Merchants Group, but also many central state-owned enterprises or local state-owned enterprises, including China Energy Construction, Sinopec, Baosteel Shares, Poly Development, and Kweichow Moutai, have also conveyed the company's firm confidence in its own development prospects to market investors through active share increases and repurchases this year.
On October 16, China State Construction Engineering Corporation announced that, based on confidence in the company's future development prospects and recognition of its medium and long-term investment value, the controlling shareholder, China State Construction Engineering Group, plans to increase its holdings of the company's A-shares within 12 months through centralized bidding transactions. The total amount of the increase will not be less than 600 million yuan and not more than 1.2 billion yuan. This increase does not set a price range. China Energy Construction also recently announced that the company's controlling shareholder plans to increase its holdings within 6 months from the date of the announcement, with a total amount not less than 300 million yuan and not more than 500 million yuan.
The implementation of special re-lending business is imminent.
At the same time as disclosing the repurchase and increase situation, China Merchants Group also revealed that the eight listed companies under its jurisdiction will also actively connect with financial institutions to fully follow up and utilize relevant financial policies. Just before the National Day, the People's Bank of China announced that it will create a special re-lending for share repurchase and increase, guiding commercial banks to provide loans to listed companies and major shareholders for the repurchase and increase of listed company shares, with the first phase quota of 300 billion yuan.
Many securities institutions believe that the new tool of special re-lending for share repurchase and increase is expected to provide long-term funds for the stock market and improve the inherent stability of the capital market. Listed companies can obtain loans from commercial banks at a lower interest rate, which helps to reduce their financing costs, optimize capital structure, and improve financial efficiency. Especially for companies with high dividend rates, the policy will help major shareholders to increase their holdings at a lower cost, increase the dividend rate, and attract investors pursuing stable returns. Tian Xuan, Dean of the National Institute of Financial Research at Tsinghua University, said that the creation of a special re-lending mechanism for share repurchase and increase is an innovative business practice for banks to support the development of the capital market, which can promote share increase and repurchase, enhance the liquidity of the capital market, and help the development of listed companies.
The reporter learned that to help listed companies with share repurchase and increase, many banks have actively carried out related businesses. "Although the regulatory level's detailed rules have not yet been introduced, we have started sorting out related resources and carrying out special re-lending market promotion work at the first time, and many companies and shareholders have expressed their intention to apply," said a person in charge of a branch of a joint-stock commercial bank in the southwest region.
In addition, Industrial Bank has internally issued a notice on the promotion of related business marketing work, and each branch has actively marketed and sorted out the listed companies and major shareholders under its jurisdiction; Bohai Bank has divided this policy into two types of business: special re-lending for share repurchase and special re-lending for share increase, and determined target customers based on factors such as national strategic development requirements, corporate market value performance, and corporate industry status.In response to the regulatory authorities' policy spirit, Jiaxing Bank also introduced the launch of related loan product marketing and promotion work at the beginning of October, and internally issued the "Notice on Fully Promoting the Marketing of Stock Repurchase and Increase Loan Business". It clearly defines the definition, term, pricing, and target customers of the special re-lending business for stock repurchase and increase. In the selection of target customers, it is required that target customers should "meet the national industrial strategy orientation and the bank's industry credit policy requirements, have a prominent main business, operate steadily, have good credit quality, have long-term sustainable operating ability and repayment ability, and have obvious competitive advantages and good development potential in the industry or a certain area. Priority should be given to stocks with stable market value, active secondary market trading, and good liquidity, including stocks included in the CSI 300, CSI 500, CSI 1000 and other indexes; Prudence should be exercised in stocks of listed companies and their shareholders whose share pledge ratio is too high and whose reduction is restricted by the new reduction regulations.
Leave a Reply