On February 22, the three major A-share stock indexes collectively closed higher, and the Shanghai Stock Exchange Index experienced "seven consecutive positives".

After the Spring Festival, the A-share “buyback wave” continued, and many listed companies successively announced stock buyback plans.

What are the reasons for this “buyback wave” of listed companies?

What positive changes and impacts will it bring to the market?

　　Based on the latest announcement time statistics, since 2024, a total of 1,294 listed companies in the A-share market have issued repurchase announcements. The repurchase progress is completed or under implementation for 862 listed companies, and the total repurchase amount has reached 75.881 billion yuan. .

Among them, the pharmaceutical and biological industry ranks first in terms of number, and the electronics, mechanical equipment, computer, basic chemical industry, and power equipment industries rank first in number of companies, with more than 80 companies each.

　　Zhao Xijun, Co-Dean of the China Capital Market Research Institute at Renmin University of China: Judging from the characteristics of repurchases this year, the stock prices of many listed companies that have repurchased have already experienced relatively large retracements.

Relatively speaking, the cost of repurchase is relatively low, and the company's operating conditions are also good. Shareholders are willing to spend money to repurchase shares if they have confidence in the company.

　　From the perspective of the purpose of repurchase, in addition to implementing equity incentives or employee stock ownership plans, there are many repurchases used for market value management and cancellation of equity incentives.

In addition, there are currently 9 companies that have repurchased more than 1 billion yuan. Gree Electric Appliances, Rongsheng Petrochemical, and SAIC Group have the largest repurchase amounts, all exceeding 2.5 billion yuan.

　　As of the latest closing, the stock prices of these companies that have made large repurchases have generally been deeply adjusted. Compared with the high point in 2023, the stock prices of companies with repurchase amounts exceeding 100 million yuan have retreated by an average of 43.61%, and the retracement of 20 companies has exceeded 60%.

　　　Yang Delong, chief economist of Qianhai Kaiyuan Fund: The "buyback wave" of listed companies has undoubtedly played a great role in promoting the start and rise of the market.

Currently, the stock prices of many listed companies are only 30% or 40% of their highs, and some are even lower.

Therefore, listed companies have relatively strong motivation to buy back real money, which is also an important way to effectively improve investor confidence.