Since the China Securities Regulatory Commission proposed on August 18th to "relax relevant repurchase conditions and support listed companies to carry out share repurchases", within 10 days, a total of 138 listed companies in the A-share market have issued repurchase plans, and 501 repurchase related announcements have been issued, with a significant increase in quantity and density compared to before, forming the latest wave of "repurchase tide". Li Qiusuo, Chief Domestic Strategy Analyst and Managing Director of CICC Research, told Securities Daily that there have been many corporate behaviors and institutional developments related to share buybacks in listed companies recently. The increase in repurchase behavior of A-share listed companies mostly occurs in the stage of weak market performance and low valuation. Enterprises that disclose repurchase plans are expected to attract investors' attention. To boost investor confidence, according to data from Oriental Wealth Choice, A-share listed companies have implemented a total of 2069 repurchase projects since the beginning of this year. Since August, the company's repurchase efforts have significantly increased. As of August 27th, a total of 222 listed companies in the A-share market have implemented a total of 286 repurchase transactions, involving a total amount of 20.276 billion yuan. Previously, the relevant person in charge of the China Securities Regulatory Commission mentioned when answering questions from reporters about activating the capital market and boosting investor confidence, Share repurchase is an internationally recognized important means of maintaining the investment value of a company, improving corporate governance structure, and enriching investor return mechanisms. It is a fundamental institutional arrangement in the capital market. It encourages eligible listed companies to actively carry out repurchase, urges listed companies that have issued repurchase plans to accelerate the implementation of repurchase plans, increase repurchase efforts, and timely transmit positive signals. Zhu Bin, Chief Analyst of Huafu Securities Strategy, told Securities Daily that in recent years, the China Securities Regulatory Commission has encouraged and supported listed companies to carry out share repurchases in various aspects, and the overall repurchase scale in the A-share market has steadily increased. Share repurchase can not only demonstrate the company's confidence in future development, but also inspire investors' emotions. From a historical perspective, the implementation of the repurchase policy has been accompanied by the gradual stabilization and recovery of the market. Recently, the policy has been widely adopted, which once again confirms that the A-share market is in a bottoming range as a whole. From August 18th to August 28th, 138 listed companies in the A-share market issued repurchase plans, using real gold and silver to boost market confidence. Zhou Jianhua, a strategic analyst at Zhongyuan Securities, stated in an interview with Securities Daily that some companies have performed well, but their stock prices are low and clearly undervalued. Buying back one's own shares is a good choice at this time. Of course, policy encouragement is also an important triggering factor. Listed companies actively respond to the call of regulatory authorities, assume the responsibility of market entities, and maintain market stability. Li Qiusuo stated that in theory, implementing repurchase by listed companies can help boost investor confidence for several reasons: firstly, after implementing repurchase, the repurchased shares are usually cancelled or turned into treasury shares, no longer participating in trading and circulation. This behavior can reduce the company's owner's equity at once, driving up financial indicators such as ROE (return on equity) and EPS (earnings per share); Secondly, A-share listed companies generally use their own funds or self raised funds as the source of funds for repurchase. More often, using their own funds may mean that the company's operating cash flow is stable and can fully meet the requirements
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
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