Our reporter Xing Meng

　　On May 4, the Shenzhen Stock Exchange released eight measures to support the real economy, one of which is "supporting market entities to increase their holdings and repurchase", encouraging qualified listed companies to repurchase company stocks, and supporting major shareholders, directors, supervisors and senior executives to increase their shareholdings in compliance with regulations. , to enhance the confidence of all parties in the market.

　　According to Wind Information statistics, as of the press release on May 5 this year, 486 A-share listed companies have completed repurchase, with a cumulative repurchase scale of 30.547 billion yuan.

Among them, Hengli Petrochemical, SF Holding, Mindray Medical and other 70 companies have repurchased scales exceeding 100 million yuan.

　　"The repurchase of shares by listed companies is mostly used for equity incentives." Sun Fang, executive director of the Federal Reserve Securities Investment Banking Department, said in an interview with the "Securities Daily" reporter: "Major shareholders are optimistic about the future development of listed companies, and believe that the current stock price is low and cannot fully reflect The true value of a listed company, thereby demonstrating confidence in the company's development through share buybacks."

Main Board Company Buyback Scale

nearly eighty percent

　　Share repurchase can demonstrate the financial strength of listed companies and convey market confidence.

In this regard, high-quality blue-chip companies on the main board performed well.

　　Wind information data shows that in terms of sub-sectors, a total of 342 main board companies have completed repurchase this year, with a cumulative repurchase scale of 24.114 billion yuan, accounting for 78.94% of the scale; 113 GEM companies have a cumulative repurchase scale of 5.215 billion yuan , the scale accounted for 17.07%; the cumulative repurchase scale of 26 companies on the Science and Technology Innovation Board reached 1.212 billion yuan; another 5 companies on the Beijing Stock Exchange implemented share repurchases.

　　Judging from the ranking of repurchase scale, the former are mostly main board companies.

According to the data, 70 listed companies have repurchased more than 100 million yuan during the year, of which 54 are main board companies, 13 are GEM companies, and 3 are science and technology board companies.

If the scope is narrowed down to the top 10 on the list, there are 9 companies on the main board and 1 company Mindray Medical, a GEM company.

　　It is worth noting that according to Wind information data, Mindray Medical’s cumulative repurchase amount reached 1 billion yuan during the year, accounting for about one-fifth of the total repurchase scale of GEM companies in the same period.

　　"With the successive pilots of the registration system on the Science and Technology Innovation Board, the ChiNext Board and the Beijing Stock Exchange, investors in the securities market have a wider range of investments, their investment professionalism has gradually improved, their investments have become more rational, and their investment strategies have been closer to the national strategy for technological innovation." Sun Fang told reporters that some mature listed companies on the main board have not been sought after by investors in the secondary market, and their stock prices have been at a low level for a long time.

However, the company's major shareholders and operators are optimistic about the company's long-term value, so the main board listed company has become the main force of repurchase.

　　Judging from the situation over the years, the main board company has always been the main force of repurchase.

Taking the Shanghai Stock Exchange as an example, data from the Shanghai Stock Exchange shows that in 2021, the stock repurchase of the main board companies of the Shanghai Stock Exchange will be further strengthened. A total of more than 150 sub-companys will implement repurchase throughout the year, and the total repurchase amount will be about 44 billion yuan.

Among them, about 90% of the company's repurchase purpose is to implement equity incentives or employee stock ownership plans, demonstrating the company's firm confidence in long-term intrinsic value.

　　"From a long-term perspective, the development of an excellent listed company requires, in addition to its main business, a good shareholding structure and a stable management team. Therefore, more and more listed companies adopt equity incentives to retain Core team members and outstanding employees. At present, most of the repurchased shares in the market are used to cooperate with the equity incentive plan." Wang Weijia, general manager of Beijing Sunshine Tianhong Asset Management Company, told the "Securities Daily" reporter.

Be wary of share buybacks

Behind the "catchy"

　　Since the beginning of this year, the regulatory authorities have repeatedly expressed their willingness to encourage listed companies to implement share repurchases to enhance investors' sense of gain.

　　On April 11, the China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission, and the All-China Federation of Industry and Commerce jointly issued a notice on further supporting the healthy development of listed companies, encouraging listed companies to repurchase shares for equity incentives and employee stock ownership plans.

Support eligible listed companies to repurchase to stabilize stock prices.

Listed companies shall be supported in accordance with the law to raise funds through various channels such as issuance of preferred shares and bonds to implement share repurchase.

　　Affected by favorable policies, more and more listed companies have joined the repurchase army since April.

According to the incomplete information released by the exchange, the reporter of Securities Daily reported that according to the announcement date, since April as of May 5, 63 companies have issued announcements related to the first repurchase of company shares.

　　"It should be noted that although repurchase can demonstrate the confidence of listed companies in the development of the company, it may also use information asymmetry to interfere with market judgment." Wang Shiwen, a professor at the Business School of Suzhou University of Science and Technology, told the Securities Daily reporter that listed companies Stock prices are affected by multiple factors, and not all repurchases are expected to generate returns.

In addition, the existence of "flickering repurchase" and "left-hand repurchase, right-hand reduction" will also reduce the market effect of repurchase.

　　Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, told reporters that for share repurchases, investors must have the ability to identify and judge, and the key depends on whether the company has sustainable competitiveness or R&D capabilities.

(Securities Daily)