A-share companies trigger another wave of repurchase and shareholder increase
Enhance investor confidence
Listed companies that participate in repurchase or significant shareholder increase generally express their hope to further maintain the company's
stock price, stabilize market expectations, and enhance investor confidence through repurchase or shareholder increase.
Analysts at CITIC Securities (21.620, 0.44, 2.08%) believe that dividends, repurchases, and shareholder increases are important ways for listed companies
to value shareholder returns and actively give back to investors. The current A-share market continues to fluctuate, and the trend of repurchase and
shareholder increase has a positive impact on market sentiment and stock prices.
China Merchants Securities (13.910, 0.29, 2.13%) stated that large market value state-owned listed companies and their controlling shareholders are
taking the lead in repurchasing and increasing their holdings, which is expected to serve as a benchmark and leading role in driving market
expectations, leading more companies to carry out repurchases and shareholder increases, injecting incremental capital into the market, and boosting
Analysts from Guolian Securities (11.460, 0.43, 3.90%) found that the companies participating in repurchase are generally better than the market
average in terms of cash stock, quality, and structure, and the median return on equity is also higher than the overall market level.
Listed companies have received strong policy support for conducting buybacks. The relevant person in charge of the China Securities Regulatory
Commission previously stated that it encourages eligible listed companies to actively carry out repurchase, urges listed companies that have already
issued repurchase plans to accelerate the implementation of repurchase plans, increase repurchase efforts, and timely transmit positive signals.