Real Gold and Silver Transmission of Development Confidence: 6 Listed Companies of Central Enterprises Joining the Army of Repurchase and Holding Increase
2023-10-17
A group of state-owned enterprises holding listed companies have joined the team of repurchase and increase holdings. On the evening of October 16th, 10 state-owned listed companies or their major shareholders collectively took action to repurchase or increase their holdings, injecting strong warmth into the market. Among them, 9 central enterprises in Shanghai stock market that disclosed the plan or progress of shareholders' shareholding increase or repurchase include middling coal Energy, Baosteel, Three Gorges Energy, China Railway Construction Corporation, China Resources Micro, China Power Construction Corporation, COSCO Holdings, Sinopec and China Mobile. Shenzhen company Hikvision also disclosed the plan of controlling shareholders' shareholding increase. On the evening of October 16, the massive shareholding increase repurchase delivered confidence in development. The five central enterprises newly added to the repurchase plan were middling coal Energy, Three Gorges Energy, China Railway Construction Corporation, China Resources Micro and Baosteel Co., Ltd., as well as Hikvision, a Shenzhen central enterprise company. Overall, among the five central enterprises that have added new shareholding plans, the amount of shareholder increase ranges from 100 million yuan to 500 million yuan. Specifically, middling coal Group, the controlling shareholder of middling coal Energy, plans to increase its A-share holdings in the company through centralized bidding, block trading and other means through the Shanghai Stock Exchange in the next 12 months, with the cumulative increase of no more than 50 million shares. According to the estimated average share price of middling coal Energy in nearly 60 trading days, the upper limit of middling coal Energy's shareholding increase is expected to exceed 400 million yuan. China Railway Construction Group, the controlling shareholder of China Railway Construction Corporation, plans to increase its A-share holdings in the company within the next six months. The cumulative increase in holdings shall not be less than 0.1% of the total issued share capital of the company before the increase, and shall not be higher than 0.25% of the total issued share capital of the company before the increase. The total increase in holdings shall not exceed 300 million yuan, and the sources of funds shall be China Railway Construction Corporation's own funds and self raised funds. In addition, the controlling shareholder of Three Gorges Energy, Three Gorges Group, plans to increase its holdings by no less than 300 million yuan and no more than 500 million yuan, with an increase price of no more than 6 yuan per share. The funding source is Three Gorges Group's own funds. The Science and Technology Innovation Board company China Resources Micro announced that the actual controller, China Resources Limited, plans to increase its holdings of the company's shares through centralized bidding, bulk trading, and other methods within 12 months from the disclosure date, based on its confidence in the company's future development and recognition of the company's long-term investment value, with a total increase of no less than 100 million yuan by the company's controlling shareholder or other wholly-owned subsidiaries of China Resources. On the evening of October 16th, Hikvision announced that the controlling shareholder of the company, China Electronics Hikvision Group Co., Ltd., plans to increase its holdings of A-shares within 6 months from the announcement date, with a total increase of no less than 200 million yuan and no more than 300 million yuan, and a planned increase price of no more than 40 yuan per share (inclusive). The large-scale repurchase plan disclosed by Baosteel on the evening of October 16th also excited investors. The announcement shows that the company plans to use its own funds of no more than 3 billion yuan to repurchase A-shares of the company at a price of no more than 8.86 yuan per share. The repurchase quantity is no less than 330 million shares and no more than 500 million shares, accounting for approximately 1.48% to 2.25% of the company's total share capital before the repurchase. Behind the increasing activity of repurchase and major shareholder increase in listed companies controlled by central enterprises is the strong support of relevant regulatory authorities and the State owned Assets Supervision and Administration Commission of the State Council. The relevant person in charge of the China Securities Regulatory Commission recently stated that it encourages eligible listed companies to actively carry out repurchase, and urges listed companies that have already issued repurchase plans to accelerate the implementation of repurchase plans and increase repurchase efforts. In May 2022,
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Shanghai Securities Daily
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