Rare! More than 30 A-share companies collectively propose to repurchase the Science and Technology Innovation Board | listed companies | A-shares
In the past two days, there has been a rare wave of repurchase proposals by the chairman and actual controller of listed companies in the A-share market, many of which are listed on the Science and Technology Innovation Board. According to statistics from China Securities News, on the evening of August 17th alone, 31 chairmen and actual controllers of the Science and Technology Innovation Board proposed repurchases, and one Science and Technology Innovation Board company released an official repurchase plan. On the evening of August 16th, the chairmen of five science and technology innovation board companies, namely Science and Technology, Aotai Biotechnology, STEM Navigation, Mailande, and Jinghua Micro, proposed to repurchase their shares.
According to Wind data, since the beginning of this year, a total of 230 A-share listed companies have disclosed their repurchase plans, excluding the impact of targeted repurchases. Among them, 37 are companies listed on the Science and Technology Innovation Board, accounting for 16%.
Analysts say that implementing equity incentives or employee stock ownership plans, conducting market value management, providing profit compensation, stabilizing stock prices, stabilizing investor expectations, and boosting market confidence are common considerations for A-share repurchases. Listed companies actively engage in buybacks, conveying recognition of the company's intrinsic value and confidence in its sustainable and stable development.
Quickly forming a repurchase plan
A reporter from China Securities News observed that after some listed company chairmen proposed the release of repurchase plans, a formal repurchase plan was quickly formed.
Taking STEM Navigation as an example, the company announced on the evening of August 16th that its controlling shareholder, actual controller, and chairman proposed the company to repurchase shares, and the official repurchase plan was released one day later.
From the perspective of the planned repurchase amount, companies such as Naxin Micro, Daquan Energy, and Huaxi Biotechnology have the highest planned repurchase amount.
On the evening of August 17th, Naxin Micro disclosed an announcement regarding the proposal of the company's controlling shareholder, actual controller, and chairman to repurchase shares. The announcement shows that the total amount of funds for repurchasing shares shall not be less than 200 million yuan and shall not exceed 400 million yuan. The shares repurchased this time will be fully used for employee stock ownership plans or equity incentive plans at an appropriate time in the future. The price for repurchasing shares shall not exceed 160 yuan per share.
For the purpose of the proposed repurchase, Naxin Micro stated in the announcement that based on its confidence in the company's future sustainable development and recognition of the company's long-term value, in order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of company employees, enhance the cohesion of company employees, and maintain the interests of investors, enhance their investment confidence in the company, promote the long-term healthy development of the company, further establish a long-term mechanism for risk sharing and benefit sharing among the company, shareholders, and core employees, so that all parties can work together more closely to promote the company's long-term, stable, and sustainable development, it is proposed that the company conduct share repurchases through centralized bidding transactions with excess funds, and use them all for employee shareholding plans or equity incentive plans at an appropriate time in the future.
Boosting investor confidence
The recently proposed repurchases of listed companies on the Science and Technology Innovation Board include "star" companies such as Stone Technology and Huaxi Biotechnology. Some companies have set a higher limit on the planned repurchase price.
On August 17th, Stone Technology received a repurchase letter from its controlling shareholder, actual controller, and chairman, Chang Jing, proposing a repurchase amount of no less than 51.1778 million yuan and no more than 102.3555 million yuan. The shares repurchased this time will be fully used for employee shareholding and equity incentive plans at suitable future opportunities. The repurchase price shall not exceed 435 yuan per share. As of the close on August 17th, the stock price of Stone Technology closed at 261.86 yuan per share, with a closing increase of 1.99%.
Yang Delong, Chief Economist of Qianhai Open Source Fund, said that the active implementation of repurchase by listed companies indicates that the management of listed companies believes that the stock price is undervalued, conveying recognition of the company's intrinsic value and confidence in sustainable and stable development. The active repurchase of listed companies also reflects the current expectation of profit recovery and improvement, which has a positive effect on activating the capital market and boosting investor confidence.
Pan Helin, Co Director and Researcher of the Digital Economy and Financial Innovation Research Center at Zhejiang University International Business School, told reporters that listed company repurchases can reduce the downside risk of stock prices in a volatile market environment and create a good market image for listed companies. Timely stock repurchases by listed companies are beneficial for optimizing capital structure, stabilizing or increasing stock prices, enhancing shareholder control over the company, and accumulating treasury shares for equity incentives or convertible bonds, which is beneficial for the long-term healthy development of A-share listed companies.
