news

securities times reporter huang xiang

recently, amid the sluggish market, the repurchase of listed companies has reached a climax again. this week, many companies have successively launched large-scale repurchase plans. since the beginning of this year, the repurchase of listed companies has reached a record high in recent years, and the proportion of market value management and cancellation-style repurchase has increased. industry insiders believe that the current repurchase trend is conducive to promoting the activity and stability of the stock market.

this week, more than 100 companies released stock repurchase announcements, including companies that disclosed repurchase plans for the first time, repurchase plans approved by shareholders' meetings, and repurchase projects that have been implemented. among them, more than 10 listed companies, including wuxi apptec, jiajiayue, dabao medical, and juzi technology, have put forward repurchase plans, with a total repurchase amount limit of more than 2.5 billion yuan.

on the evening of september 10, wuxi apptec disclosed that it plans to spend 1 billion yuan on share repurchases, which has become a relatively large repurchase plan in recent times. prior to this, wuxi apptec completed two repurchase plans in february and may this year, repurchasing a total of 2 billion yuan of a-shares.

since the beginning of this year, with the support and encouragement of policies, listed companies have shown a strong enthusiasm for repurchases, with the number and amount of repurchase plans doubling compared with the same period last year. according to data recently released by the china securities regulatory commission, from january to august this year, about 1,900 a-share listed companies actually implemented repurchases, with a cumulative repurchase amount of more than 130 billion yuan. in addition to repurchases, the number and amount of shareholdings increased by major shareholders of listed companies have also increased significantly year-on-year.

according to wind data, as of september 13, there were 4,553 new buyback plans this year, involving 1,806 listed companies. at the same time, about 1,400 listed companies have completed buyback plans this year, exceeding the 1,196 companies in the whole of last year. in addition, 72 companies have disclosed more than two buyback plans this year, and 38 companies have disclosed buyback plans for three consecutive years.

as the number of market value management repurchases increased, the scale of repurchases also increased. in terms of the repurchase amount, more than 10 listed companies, including hikvision, wuxi apptec, san'an optoelectronics, catl, tongwei co., ltd., baosteel co., ltd., sf holding, asymchem, jiuan medical, hebang bio, and will semiconductor, repurchased more than 1 billion yuan this year.

it is worth noting that the proportion of market value management and cancellation-style repurchases has increased significantly in the repurchases this year. according to statistics, in the first eight months of this year, the shanghai and shenzhen stock markets disclosed 170 new cancellation-style repurchase plans, an increase of 136 over the same period last year, with planned repurchase amounts ranging from 18.9 billion yuan to 32.4 billion yuan. among them, the repurchase cancellation limit of 5 companies was more than 1 billion yuan, with the highest being yili shares, with a repurchase cancellation limit of 2 billion yuan. at the same time, in the first eight months, the shanghai and shenzhen stock markets disclosed a total of 274 new market value management repurchase plans, an increase of 267 over the same period last year, with planned repurchase amounts ranging from 16.7 billion yuan to 31.7 billion yuan.

"market value management repurchase refers to listed companies maintaining their stock prices and boosting investor confidence through repurchases when the stock prices are low. through market value management repurchases, the company will not immediately destroy the shares, and they may be used for employee incentives, sales, and other purposes in the future." a securities company sponsor told reporters. cancellation repurchase refers to the company canceling the shares after repurchasing them, reducing the company's total share capital. in this way, the company's shareholders' equity per share increases, thereby improving the earnings per share indicator and achieving the purpose of increasing shareholder value.

under the current market conditions, cancellation-type repurchases have received attention, and a number of listed companies have recently announced changes to the purpose of share repurchases to share cancellation.

on the evening of september 10, helenge announced that the company's board of directors decided to adjust the use of some shares in the repurchase special securities account from the original plan of "implementing employee stock ownership plans or equity incentives" to "cancellation and corresponding reduction of registered capital." helenge said that after the share cancellation is completed, the company's total share capital will be reduced, which will help further improve the level of earnings per share, enhance investor confidence, and demonstrate the company's protection of shareholder interests.

the aforementioned securities firm sponsor analyzed that the proportion of market value management and cancellation-style repurchases has increased significantly. on the one hand, it is due to the positive guidance of the new "nine national regulations" in the capital market, and the market pays more attention to strengthening investor protection and highlighting shareholder returns; on the other hand, listed companies are actively maintaining stock prices and releasing positive signals during the current period of downward valuation. "at present, the increase in the proportion of market value management and cancellation-style repurchases will help improve company value and stock prices, enhance investor confidence, optimize capital structure, and promote stock market activity and stability."

it is worth noting that industry insiders also remind that repurchases, while a signal of a company's stable operation, may not necessarily immediately improve the company's stock price. the repurchase behavior of listed companies should be viewed in a comprehensive analysis combined with attention to the company's fundamentals and future performance expectations.