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A-shares are seeing a resurgence of buybacks and increased holdings.

After the market closed on August 26, many listed companies including Kangyuan Health, UFIDA Network, Haoyue Nursing and Fulaiant disclosed announcements of share purchases and repurchases.

Since the beginning of this year, more than 1,000 listed companies have completed repurchases of more than 100 billion yuan, a significant increase from the same period last year. From the perspective of major shareholders' increased holdings, major shareholders of listed companies have increased their holdings by more than 50 billion yuan this year. The frequent repurchase and increase of holdings by A-share listed companies has become a positive signal to enhance the market's bullish sentiment and help stabilize market expectations.

Listed companies frequently disclose repurchase and shareholding increase announcements

Recently, listed companies have frequently issued announcements of repurchase and increase of holdings. The repurchase and increase of holdings boom has re-emerged, which has become a positive signal to enhance the market's bullish sentiment and help stabilize market expectations.

On August 26, among the listed companies that successively issued repurchase announcements, the repurchase amount involved by many companies such as Kangyuan Health, UFIDA Network, Haoyue Nursing and Fulaiant was no less than 50 million yuan.

Kangyuan Health announced that Zhu Baoguo, the actual controller and chairman of the company, proposed that the company repurchase the company's RMB common stock (A shares) through the Shanghai Stock Exchange stock trading system in a centralized bidding transaction. The type of repurchased shares is RMB common stock (A shares), and the repurchase method is through the Shanghai Stock Exchange stock trading system in a centralized bidding transaction. The purpose of the repurchased shares is to cancel all of them to reduce the company's registered capital. The total amount of repurchase funds shall not be less than RMB 300 million (inclusive) and not more than RMB 500 million (inclusive).

Prior to this, Kangyuan Health had repurchased shares every year since 2021, with a cumulative repurchase amount exceeding 2 billion.

China's ERP market leader UFIDA Network announced that its controlling shareholder Beijing UFIDA Technology proposed that the company use its own funds to repurchase shares, and all the repurchased shares will be used for employee stock ownership plans or equity incentives. The scale of funds for repurchased shares shall not be less than RMB 50 million (inclusive) and not more than RMB 100 million (inclusive).

Haoye Care, a leading manufacturer in the field of personal hygiene care products in China, announced that it plans to repurchase shares for 50 million to 100 million yuan to cancel and reduce the company's registered capital and equity incentive plan. The repurchase price will not exceed 40 yuan per share.

The leading company of mid-to-high-end disperse dyes, Fulaiant, announced that the company will repurchase shares with funds of no less than 50 million yuan (inclusive) and no more than 100 million yuan (inclusive), and the source of funds will be the company's own funds or self-raised funds. The repurchased shares will be used to implement equity incentives or employee stock ownership plans, and the repurchase price will not exceed 22.36 yuan per share. The repurchase period shall not exceed 12 months from the date on which the company's board of directors deliberates and approves this repurchase plan.

Gao Wei Da announced that based on the confidence in the company's future sustainable development and recognition of the company's value, the company intends to use its own funds to repurchase shares through centralized bidding transactions. The total amount of funds used for this repurchase will not be less than 30 million yuan and not more than 35 million yuan, and the repurchase price will not exceed 11.16 yuan per share. It is reported that the repurchased shares will be used to reduce the registered capital.

In addition, Hangmin Co., Ltd. announced that it plans to repurchase 20 million to 30 million shares of the company for cancellation; the chairman of *ST Navigation proposed to repurchase shares for RMB 15 million to RMB 30 million, and the repurchased shares will all be used for employee stock ownership plans or equity incentive plans at an appropriate time in the future.

It is worth noting that the market capitalizations of many of the listed companies that plan to use tens of millions of yuan to repurchase shares are not high. For example, the market capitalizations of Gaoweida, Fulaiant, and Haoyue Nursing are all less than 5 billion yuan, which means that the repurchased shares account for a large proportion of the company's total share capital, which may have a significant positive impact on stabilizing the company's stock price.

In addition to the listed companies that plan to implement repurchases, listed companies such as Tianma Technology and China Tianying have disclosed announcements of share purchase plans.

Tianma Technology announced that the company has received a notice from the controlling shareholder, actual controller, some directors, supervisors, and senior managers, as well as core management personnel, that they plan to increase their holdings in the company's shares through the Shanghai Stock Exchange's centralized bidding trading system within 12 months from August 27, 2024. The planned upper limit of the cumulative increase is 50 million yuan, and the lower limit of the increase is 25 million yuan.

China Tianying, a world-leading environmental services group, announced that some of the company's directors, supervisors, senior executives and core personnel intend to increase their holdings of the company's shares by centralized bidding within 6 months, with the total amount to be increased by no less than 20 million yuan. There is no fixed price or price range for this increase.

Recently, the secondary market has continued to fluctuate, and many listed companies or shareholders have repurchased or increased their holdings, supporting the company's stock price with real money. On the one hand, this conveys confidence to the market and stabilizes expectations, and on the other hand, it shows the market the company's optimistic expectations for the industry's prospects.

The repurchase amount exceeded RMB 100 billion this year

On the same day, many listed companies also announced the progress of repurchase and increase of holdings.

Yifei Laser announced that as of August 26, 2024, the company has repurchased a total of 2.08% of the company's shares accounting for the total share capital. The highest repurchase transaction price was RMB 32.46 per share, and the total amount of funds paid was RMB 53.1885 million (excluding transaction fees such as transaction commissions).

Jiyou Shares announced that as of August 26, 2024, the company's cumulative repurchased shares accounted for 2.04% of the company's total share capital, and the total amount paid was 41.2699 million yuan (excluding transaction fees).

At present, there are still many companies that are in the stage of repurchase and major shareholders increasing their holdings.

Wind data shows that since the beginning of this year, the amount of repurchases by listed companies and the amount of share purchases by major shareholders have both increased significantly year-on-year.

As of August 26, more than 1,000 listed companies have completed repurchases exceeding 100 billion yuan since 2024, a significant increase from the same period last year.

More than 10 leading A-share companies, including Hikvision, WuXi AppTec, San'an Optoelectronics, CATL, SF Holdings, and Tongwei Co., Ltd., have repurchased more than 1 billion yuan this year.

From the perspective of major shareholders increasing their holdings, major shareholders of listed companies have increased their holdings by a total of more than 50 billion yuan this year, which is at a relatively high level in recent years.

Judging from the purpose of increasing holdings, most entities did so based on their confidence in the company's future development prospects and recognition of the company's value.

Institution: The index is expected to open up upward repair space

The market has been volatile and divided recently. Institutions generally predict that in the short term, the mid-year report disclosure period will soon be over, and the market may gradually digest the downward revision of earnings expectations. At the same time, the Federal Reserve has sent a strong signal of a September interest rate cut. If combined with signals of increased domestic policy efforts, the index is still expected to open up room for upward recovery.

"The continued decline in market risk appetite has caused funds to continue to gather towards defensive sectors, and the pressure on the funding side has made investors more cautious in their expectations for market trading volumes." China Europe Fund believes that the domestic market is expected to remain dominated by structural trends, and the short-term performance of structural trends will be reflected in the convergence of sector valuation differences.

"Since the numerator lacks flexibility within the foreseeable time, the denominator becomes the core factor affecting the A-share market." Morgan Stanley Fund analyzed that in the short term, the swing back of the Fed's interest rate cut expectations is expected to come to an end, which will undoubtedly support global stock markets. The mid-year reports will be disclosed this week, and the A-share market will reduce a suppressive factor. There will be a performance vacuum period of more than one month. It is expected that the market focus will shift to domestic countercyclical adjustment policies and overseas monetary policies, and the probability of a market rebound will also increase.

From an industry perspective, China Europe Fund is optimistic about the following sector opportunities: first, the sectors that benefit from the structural switch in the short-term market rebound may include oversold and undervalued sectors, especially the core industries of stable growth such as real estate that benefit from subsequent policy stimulus; second, the rebound opportunities after the oversold domestic demand sector; third, the main growth lines such as technological self-reliance and the fruit chain. In the medium and long term, with the gradual disclosure of financial reports, the main line of new quality productivity that conforms to the new "National Nine Articles" guiding ideology, high ROE companies and industries with room for ROE improvement are expected to receive further attention from the market.

"Further clarification of the actual policy implementation may have a leading role in some industries." Hang Seng Qianhai Fund analyzed that in terms of allocation, the defensive direction will still choose high-dividend, low-valuation dividends, and the offensive direction will focus on the improvement of the bottom consumer sector and the rise of a new round of industrial cycles, mainly technology growth and large manufacturing sectors.

Morgan Stanley Fund is optimistic about some areas that will benefit from the Fed's interest rate cuts, such as innovative drugs and gold. It also believes that areas with stable fundamentals and policy support, such as home appliances and utilities, will maintain good relative returns. In the medium term, it continues to be optimistic about semiconductors and military industry where business conditions are improving.