Repurchase, increase holdings! One night, 10 central enterprises made a move, and 20 companies on the science and technology innovation board disclosed good news

Following Central Huijin's increase in its holdings in the four major state-owned banks, the A-share market set off a wave of buybacks.

On October 16, 10 central enterprises in Shanghai and Shenzhen disclosed repurchases, shareholding increases or progress announcements, and a total of 20 companies on the Science and Technology Innovation Board disclosed favorable announcements such as buybacks, holdings increases, commitments not to reduce holdings, and operating data.

Tianfeng Securities previously released a research report saying that on the one hand, the boom of listed companies buying back and increasing holdings is conducive to conveying positive sentiment to the market and demonstrating the market's confidence in economic recovery. On the other hand, it is conducive to stabilizing stock prices and protecting the interests of investors. As a kind of market value management behavior, large-scale repurchase and increase of holdings play a certain role in stabilizing the stock price and preventing the company's stock price from being too low and deviating from the company's actual value by releasing positive signals to the secondary market.

10 central enterprises increased their holdings and repurchased them on the way

On the evening of October 16, five listed companies, China Coal Energy, China Railway Construction, Three Gorges Energy, China Resources Micro and Hikvision, disclosed their shareholding plans.

Among them, China Coal Energy announced that on October 16, the company received a notice from its controlling shareholder, China Coal Group, that China Coal Group intends to increase its holding of A-shares by means of concentrated bidding and block trading within 12 months from the date of disclosure of the announcement, and the cumulative number of additional holdings will not exceed 50 million shares.

China Railway Construction also received a notice from its controlling shareholder, China Railway Construction Group Co., Ltd., on October 16 that China Railway Construction Group intends to increase its holdings of A-share shareholders within 6 months from the date of disclosure of this announcement, with a cumulative increase ratio of not less than 0.1% of the total issued share capital of the company before the increase, not higher than 0.25% of the total issued share capital of the company before the increase, and the total amount of the increase shall not exceed 300 million yuan. There is no price range for this increase, and the source of funds is China Railway Construction Group's own funds and self-financing.

Three Gorges Energy also announced that the controlling shareholder Three Gorges Group plans to increase its holdings of the company's shares in the next 12 months, with an increase of 3~600 million yuan, and the increase price will not exceed 6 yuan per share, and the source of funds is Three Gorges Group's own funds.

Hikvision also stated that the controlling shareholder, CLP Hikvision Group Co., Ltd. (hereinafter referred to as "CEC Hikvision"), plans to increase its holdings of the company's A-shares within 6 months from the date of this announcement, the total amount of the increase will not be less than 200 million yuan, not more than 300 million yuan, and the proposed increase price will not be higher than 40 yuan per share (inclusive), specifically according to the fluctuation of Hikvision's stock price and the overall trend of the capital market, choose the opportunity to implement the increase plan.

China Resources Micro disclosed the announcement on the plan of the actual controller subsidiary to increase its shareholding in the company, and the actual controller of the company, China Resources Co., Ltd., plans to increase its shareholding by CRH (Microelectronics) Limited (China Resources Group (Microelectronics) Limited or other wholly-owned subsidiaries of China Resources through centralized bidding and block transactions within 12 months from the announcement disclosure date, with a total increase of not less than 100 million yuan.

In addition, five other companies disclosed repurchase related announcements, among which, Baosteel disclosed the repurchase plan, COSCO SHIPPING Holdings, Sinopec, PowerChina and China Mobile disclosed the progress of the repurchase.

According to the announcement, Baosteel intends to use its own funds of no more than 3 billion yuan to repurchase A shares through centralized bidding at a price of no more than 8.86 yuan per share, and the number of repurchased shares shall not be less than 330 million shares and no more than 500 million shares, accounting for about 1.48%~2.25% of the company's total share capital before repurchase. The repurchase period shall not exceed 12 months from the date of approval of the share repurchase plan by the Board of Directors of the Company. The repurchase of shares will be used for the implementation of equity incentive plans in the future.

COSCO SHIPPING Holdings disclosed on August 29 that within 3 months from the date of deliberation and approval by the board of directors, it intends to repurchase the company's A shares through centralized bidding transactions with its own funds for cancellation and reduction of registered capital, with a total number of 30 million shares to 60 million shares, and the repurchase price does not exceed 12.29 yuan per share. Up to now, the company has repurchased a total of 21,339,294 A shares, and the total amount paid is about 207.98 million yuan.

Sinopec announced on October 16 that the company repurchased 5,000,0063 A shares through centralized bidding transactions, with a repurchase amount of 29,254,100 yuan. Since the company first implemented this round of A-share repurchase on September 21, 2023, the company has repurchased a total of 44,700,0078 A shares, accounting for 0.04% of the company's total share capital, and the total amount paid is 267 million yuan. The company issued a repurchase plan on August 27, saying that it intends to buy back no less than 800 million yuan and no more than 1.5 billion yuan within three months.

Up to now, PowerChina's controlling shareholder, PowerChina Group, has increased its holdings of 155 million A-shares through centralized bidding transactions, accounting for about 0.90% of the company's total share capital. The company announced on September 27 that Power Construction Group intends to increase its holdings by a total of no more than 2.4 billion yuan within six months.

China Mobile also announced that China Mobile Group has increased its holdings of 26,258,410 A shares of the company, accounting for about 0.123% of the total issued shares of the company and 2.909% of the total number of issued A shares of the company, with a cumulative increase of about 1.514 billion yuan, which has exceeded 50% of the lower limit of the increase plan. China Mobile Group plans to increase its holdings by a cumulative amount of not less than RMB3 billion and not more than RMB5 billion from January 21, 2022 to December 31, 2022. On November 30, 2022, China Mobile extended the implementation period of the increase plan to December 31, 2023.

20 companies on the STAR Board disclosed announcements such as increasing holdings, buying back, and not reducing holdings

At the same time that the main board concentrated on disclosing announcements related to increasing holdings and repurchases, on the evening of the 16th, 13 companies on the science and technology innovation board also issued announcements related to repurchase and increase holdings. In addition, shareholders of 3 companies voluntarily pledged not to reduce their holdings; Four companies voluntarily disclosed operating data or other positive management information.

Among the above 20 companies, there are 5 science and technology innovation 50 companies and 6 science and technology innovation 100 companies.

Prior to this, JinkoSolar, a science and technology innovation 50 company with a market value of nearly 100 billion yuan, bought back 300 million yuan in less than a month; Another science and technology innovation 50 company, BGI Intelligent Manufacturing issued a repurchase plan after one year of listing, with a maximum repurchase amount of 500 million yuan.

Hanchuan Intelligent released the repurchase implementation results and new repurchase proposal on the same day at the end of September, and then launched a new round of repurchase plan after completing the previous repurchase with the repurchase limit amount, and the proposed repurchase amount increased by 66.7% year-on-year.

Since July, a total of 77 companies on the STAR Board have proposed or released repurchase plans, with a maximum amount of 8.47 billion yuan and a cumulative repurchase amount of 1.98 billion yuan, during which a total of nearly 400 repurchase progress was announced.

Among them, there are 18 science and technology innovation 50 companies, with a maximum amount of 4.55 billion yuan to be repurchased, with a cumulative repurchase amount of 1.38 billion yuan; 16 science and technology innovation 100 companies, with a maximum amount of 2.12 billion yuan, and have recently increased their repurchase efforts.

Further reading:

Huijin central enterprises have increased their holdings and repurchases, and international investment banks are optimistic about the medium and long-term market