Listed companies are buying back and increasing their holdings, and private equity bigwigs are also increasing their positions

A new wave of "repurchase and increase holdings" has begun!

Since 2024, the A-share market has continued to pull back, and listed companies have collectively repurchased and increased their holdings.

On January 31, Tongwei Co., Ltd. announced that Tongwei Group Co., Ltd., based on its firm confidence in the company's development prospects and the recognition of the company's long-term investment value, intends to increase its holdings of the company's shares by no less than 1 billion yuan and no more than 2 billion yuan through the methods permitted by the Shanghai Stock Exchange trading system within 12 months from the date of the announcement of the shareholding increase plan, and the total increase ratio does not exceed 2% of the company's total share capital.

For another example, Nandu Power said that on January 31, 2024, the company received a notice from some directors and senior managers of the company on the plan to increase their holdings of the company's shares, and some of the company's directors and senior managers intend to increase their holdings of the company's shares within 6 months from the date of the announcement of this shareholding increase plan. The total amount of this increase shall not be less than RMB 35 million (inclusive) and not more than RMB 60 million (inclusive). The shareholding increase plan does not set a price range for increasing holdings, and will be implemented at an opportune time based on the fluctuations of the company's stock price and the overall trend of the capital market.

In order to effectively promote the action plan of "improving quality and efficiency and emphasizing returns", listed companies repurchase and increase their holdings, on the one hand, based on the recognition of the company's value, and on the other hand, it is conducive to enhancing investors' confidence.

Guo Ruiming, deputy director of the Listing Department of the China Securities Regulatory Commission, pointed out that share repurchase, as a basic institutional arrangement in the capital market, has the functional role of optimizing the capital structure, maintaining the company's investment value, and improving the investor return mechanism.

From the perspective of domestic and foreign markets, the analysis believes that the multiple factors that suppress the market have ushered in positive marginal changes, such as the disturbance of northbound funds has slowed down, the valuation of the Beijing Stock Exchange has returned to rationality, the geopolitical disturbance has also been reduced, and the blockbuster meeting is about to be held.

In the face of the adjustment of the A-share market, the private equity bosses are not idle. Lin Yuan, a well-known private equity boss and chairman of Lin Yuan Investment, said on many public occasions that he is firmly optimistic about the investment opportunities in the bottom area of the current market. He believes that the current A-share market has shown many positive signals, whether it is the support of policies or the market performance, which shows that the current area has reached the bottom.

Looking back on history, whenever there is a wave of A-share holdings, the market will basically show a wave of relatively large increases.

In November 2016, the insurance capital raised its cards to drive another round of increase in holdings

Since 2017, industrial capital and "quasi-industrial capital (shareholders of listed companies, directors, supervisors and senior executives, employee stock ownership plans)" have carried out value mining type lifting, for the purpose of financial investment, using real money to increase the shares of listed companies, and in March 2017, the net increase in the secondary market of important shareholders reversed, hitting a one-year high net increase.

After this wave of buybacks and holdings in 2024, will A-shares skyrocket?