Industrial Capital Entry Escort A Shares 283 Enterprises Start Buy Back

In March 16th, the Shanghai Composite Index fell 3.40% and fell to 2800 points under the influence of the peripheral market.

In recent days, with the sharp fluctuations of A shares, the share repurchase phenomenon has been remarkably active. In the evening of March 16th, a number of listed companies such as Meck home, Zhenjiang shares and other listed companies announced the progress of the repurchase.

According to wind data, since February, as of March 16th, 283 A share listed companies have issued repo announcements, including repurchase plans and implementation of buybacks.

Buy back boom

According to the twenty-first Century economic report reporter statistics, the purpose of the above listed companies to start repurchase is different. Among them, the purpose of repurchase is the 114 cancellation of equity incentive, and the 25 implementation of equity incentive is the 15 time of market value management, 2 times of earnings compensation, and 127 listed companies have not disclosed the purpose of stock repurchase in detail.

Specifically, the total number of repurchases by the targeted buyback mode was 116 times, and 166 of them were repurchased by centralized bidding, accounting for nearly 6.

Excluding listed companies with 116 directional repurchases, the listed company intends to buy back the stock amount in the total amount of 5 billion 577 million shares, only 2 billion 631 million shares are repurchased, and the total repurchase amount is as high as 21 billion 322 million yuan.

From the perspective of industry distribution, the top five industries with the highest repurchase amount are real estate, household appliances, medicine and biology, electrical equipment and light manufacturing. As of now, they have repurchased 3 billion 462 million yuan, 3 billion 404 million yuan, 2 billion 903 million yuan, 1 billion 263 million yuan and 1 billion 179 million yuan respectively.

According to the disclosure announcement, the US group has the highest repurchase amount in the listed companies that have started the repurchase now, so far, the US group has repurchased 3 billion 200 million yuan.

In August 2014, the US group released the "long-term mechanism for share repurchase program" as a group of "buy back". After that, almost every year, the US group issued a buy back plan.

In February 2020, the US group threw out the 2020 buy back plan, and intends to use its own funds in the next year to repurchase some of its shares in the form of centralized bidding. The repurchase price is no more than 65 yuan / share, and the number of repurchases is no more than 80 million shares and not less than 40 million shares. According to the highest price, the US group's maximum repurchase amount for 2020 is 5 billion 200 million yuan.

As of March 13, 2020, the United States Group has repurchased 1745310 shares by centralized bidding, with a total payment of 91 million 734 thousand yuan (excluding transaction costs).

YOUNGOR, which is close behind, has repurchased nearly 2 billion 300 million yuan as of now.

The announcement disclosed that as of March 13, 2020, YOUNGOR's buyback special securities account had accumulated 353 million shares of the company's shares through centralized bidding transactions, accounting for 7.04% of the total share capital, and the lowest price was 6.11 yuan, the highest price being 6.79 yuan, and the total amount of funds paid was 2 billion 295 million yuan (including transaction costs).

It is worth mentioning that, after the Spring Festival of 2020, the US stock group and YOUNGOR have fluctuated greatly, and have been in the low position since January 2020, of which YOUNGOR has dropped 6.94% since January 23, 2020 closing, while the US group has fallen 9.07% during the same period.

This is not an example. According to incomplete statistics from reporters, the listed companies of the 167 listed companies closed down in January 2020 and share prices fell to 111. Among them, GoerTek shares, Guoguang electrical appliances, Yutong technology and digital technology four listed companies have fallen by more than 20%.

"The sharp fluctuations in the stock market is indeed an important reason for the active buyback of listed companies. During the period of the stock market turmoil, stock repurchase helps to stabilize the share price, reduce the impact of the stock market volatility on the enterprise, and help to revitalize the stock market and stimulate the stock price." Pan Helin, executive dean of Digital Economics Research Institute of Zhongnan University of Economics and Law, pointed out.

However, pan and Lin also indicated that in addition to stabilizing stock prices, another important significance of stock repurchase lies in capitalization debts, improving the capital structure and improving the value of the company, which can reduce the cost of financing and improve the efficiency of capital.

"The US side's bond repurchase is a good illustration. In particular, under the epidemic situation, adjusting capital structure and improving capital utilization rate are very important for stabilizing the company and improving its value. Pan Helin said.

Looming risk of pledge

On the other hand, the risk of pledge of listed companies is also coming.

According to the twenty-first Century economic report reporter statistics, 167 of the non directional repurchase listed companies, 42 of the listed companies pledge the proportion of major shareholders more than 70%, of which, letter state pharmaceutical, Kwun hill, Chongqing iron and steel, Shang Shang Shen Bei, Shin Xia Xin Cai, Wan Tong real estate 6 listed companies holding large shareholders holding 100% pledged.

According to incomplete statistics of listed company announcements in twenty-first Century, the research group of the South responsibility investment plan of economic report in March found that 11 companies in A share issued a notice of supplementary pledge. Extending the time to this year, 66 listed companies have issued supplementary pledge notices.

I still remember the exposure of stock market pledge in 2018, triggering a series of crises, and a large number of state assets or external investors have entered the A share market to bail out. However, the stock market's fall crisis is different from the equity pledge risk that broke out in 2018.

Pan Helin told reporters: "this time of market turmoil, I do not think it will repeat the tragedy of 2019."

The specific reasons include: "first, after the baptism of 2019, many brokerages have begun to liquidate the equity pledge projects and reduce the balance of equity pledge, including the Pacific Securities and the state Yuan Securities, which have fallen by more than 10%. Secondly, the company has learned from previous lessons, has conducted a more comprehensive and due diligence investigation on stock pledge business, and the stock risk has been effectively controlled.

In Pan Helin's view, the reason for the risk of equity pledge is the objective force majeure, so the relevant departments have made measures such as allowing the expiration of the stock pledge agreement to apply for the extension, and so on, to hedge the March stock pledge expiration small peak. This kind of non centralized, general, but low strength risk exposure of stock pledge is more suitable for solving this problem through this method. This is essentially different from the previous repurchase ease of the risk of equity pledge. Moreover, after 2019, our stock stock mortgage risk has been controlled, so there is no need for excessive rescue measures. 。

It is worth mentioning that the regulatory authorities recently issued a series of measures to supplement the flow of listed companies, such as the new regulation issued by the Securities Regulatory Commission in mid February, lifting the unnecessary restrictions on the refinancing of listed companies.

?