Ever since this year, numerous SZSE-listed companies have disclosed announcement regarding their share repurchase or shareholding increase by their major shareholders. According to preliminary statistics, since June, 41 SZSE-listed companies have disclosed share repurchase preplan, which involved with a total of RMB 14.1 billion repurchasing fund. For the previous week, 61 SZSE-listed companies have implemented share repurchase with a total of RMB 4.1 billion repurchasing fund and RMB 67 million average repurchasing fund per company. As of this year, 270 SZSE-listed companies have conducted share repurchase with a total of RMB 10.4 billion repurchasing fund and around RMB 39 million average repurchasing funds per company. Meanwhile, as of July 5th, 274 SZSE-listed companies have disclosed 473 pieces of announcement regarding shareholding increase plans by their major shareholders, directors, supervisors and senior management, with promised amount of RMB 44.8 billion shareholding increase accumulatively. During the previous week, major shareholders of 26 listed companies have increased shareholding in their listed companies with more than RMB 30 million. The actual amount of shareholding increase by major shareholders of SZSE-listed companies’ totals at RMB 16.7 billion this year.
According to the information disclosed by listed companies, Midea Group, decided to repurchase shares with no more than RMB 4 billion proprietary funds out of its confidence in the Company’s development and recognition of the Company’s value. Tus-sound, HTGF and Oriental Yuhong Waterproof Technology also planned to repurchase share with no more than RMB 1 billion respectively. By virtue of the recognition of the listed Company’s long-term investment value and confidence in their prospective sustainable development, Wanxiang Group, the controlling shareholders of Wanxiang Qianchao, and its concerted party, have increased shareholding in the Company accumulatively up to 4.98% of the Company’s total capital stock with RMB 1.4 billion.
Share repurchase by listed companies and shareholding increase by large shareholders demonstrate their firm confidence in companies’ operation, profitability, and prospect, contribute to boosting investors’ confidence and stabilizing market expectation, and play a positive role in sound development of the capital market. SZSE encourages qualified listed companies and their major shareholders, directors, supervisors, and senior management to repurchase and increase shareholdings in compliance with laws and regulations, so as to strengthen the confidence in market development, and protect investors’ legitimate rights and interests.
Currently, economic fundamentals of China maintain a good momentum, with the overall performance of SZSE-listed companies steadily growing and their transformation and upgrading yielding positive outcome. Viewed from performance of listed companies and their valuations, the market has laid a solid foundation for robust operation. Next, the SZSE will earnestly strengthen the responsibilities for frontline supervision and further improve the dynamic monitoring and analysis of the market, unswervingly fight the tough battle in preventing and addressing risks and stimulate the sound and stable development of the capital market.
