On the evening of December 10, A-shares ushered in A wave of buyback. That night, more than 40 listed companies intensively disclosed buyback or increase plans, using real money to convey confidence to the capital market. Among them, the huge asset size of the Shenzhen state assets Department has also sold, to increase its holdings in Shenzhen Energy.
It is worth noting that foreign capital also has bottom-fishing actions. Morgan Stanley China A-Share Index Fund (CAF) announced in the early morning of December 8 that it would buy up to 20% of the outstanding shares, which was about $51 million at the closing price at the time. Public information shows that CAF has at least 80% of its assets invested in A-share listed companies to achieve its investment goals.
Before that, the "national team" funds have entered the market for many times. On December 1, China Guoxin Investment increased its holdings of China Securities New Central Enterprises Technology Leading Index ETF and China Securities Central Enterprises Innovation Driven Index ETF, and will continue to increase its holdings in the future; On October 11, Central Huijin sold again after eight years, increasing its holdings of more than 476 million yuan in the shares of the four major state-owned banks, and intends to continue to increase its holdings in the secondary market; Then, on October 23, Central Huijin announced that it would buy ETFs and said it would continue to increase its holdings in the future.
In addition, fund companies have recently set off a new wave of self-purchase. Since October 29, nearly 20 public funds, such as Yi Fang Da, China Asset Fund, GF Fund, China Merchants Fund and Harvest Fund, have announced their own purchases, with a total amount of more than 2 billion yuan.
More than 40 companies plan to buy back or increase their holdings
On the evening of December 10, more than 30 listed companies such as Zheng Coal Machine, Pelaiya, Zhaoxin shares, Guangqi Technology, Ocean King, Taihe new materials, Shenzhou Information, Bona Film, Yuma Sun, Huijia Times, Huicheng shares, and Stanley intensively disclosed buyback plans or proposed share buyback announcements. At the same time, nearly 10 companies such as Shenzhen Energy, Huaying Agriculture, Yiwei Lithium Energy, and Shuobede disclosed plans to increase their holdings.
Zheng Coal Machinery announced that night, the company received the proposal of Chairman Jiao Chengyao on December 10, based on the confidence of the company's future sustainable and stable development and the recognition of the company's value, in order to safeguard the interests of the majority of investors and enhance investor confidence, the company's chairman Jiao Chengyao proposed that the company repurchase part of the company's A-shares by centralized bidding trading. The total amount of repurchase funds shall not be less than 300 million yuan, not more than 600 million yuan, and the upper limit of repurchase price shall not exceed 13 yuan/share. The repurchased shares will be used for equity incentive and/or employee stock ownership plans.
Pelaiya also disclosed that recently, the company's controlling shareholder, actual controller, chairman Hou Juncheng proposed that the company repurchase shares, the total amount of repurchase funds is not less than 100 million yuan, not more than 200 million yuan, and the price of repurchase shares is not more than 130 yuan/share. Proposer Hou Juncheng promised: will actively promote the company to promote the buyback of shares as soon as possible, and will vote in favor of the company's share buyback related proposals at the board of directors.
On the evening of the same day, Zhaoxin Shares disclosed a share buyback plan, and the company intends to use its own funds to buy back some shares in a centralized bidding transaction for the implementation of equity incentive plans or employee stock ownership plans. The total amount of repurchase funds is not less than 50 million yuan, and not more than 100 million yuan, and the repurchase price is not more than 3.66 yuan/share. According to the upper limit of the total amount of repurchased funds, the number of repurchased shares is expected to be about 27.32 million shares, accounting for about 1.40% of the company's current total share capital.
Bona Film also disclosed that based on the confidence in the company's future development prospects and the high recognition of the company's long-term value, in order to effectively enhance investor confidence and further improve the company's long-term incentive mechanism, the company intends to buy back A-shares by centralized bidding trading, and the buyback price is not more than 11.28 yuan/share. The total amount of repurchase funds is not less than 40 million yuan and not more than 80 million yuan. The repurchased shares will be used to implement the company's employee stock ownership plan or equity incentive.
It is worth noting that Shenzhen state-owned assets also sold. On the evening of December 10, Shenzhen Energy disclosed the plan to increase its holding, saying that the company received the Shenzhen Capital Operation Group Co., LTD., a wholly-owned subsidiary of the company's controlling shareholder Shenzhen SASAC, on December 10. Shenzhen Capital's Letter of Notification of the Plan to increase the holding of Shares, Shenzhen Capital intends to use its wholly-owned subsidiary Yixin Investment as the main body to increase the holding of the company's shares through centralized bidding trading within 6 months from December 11, the proposed amount of additional holding is not less than 150 million yuan, not more than 300 million yuan, and the proposed price of additional holding is not more than 7 yuan/share. This increase is based on Shenzhen Capital's confidence in the company's future business development and layout in the new energy industry and its recognition of the company's value, and believes that the company's shares have investment value under the current stock price.
According to public information, Shenzhen Capital was established in June 2007. It is a state-owned assets auxiliary performance platform and a professional platform for state-owned capital operation specially established by Shenzhen SASAC in order to promote the transformation of state-owned assets management from assets management to capital management and promote the overall capital operation strategy of state-owned assets in Shenzhen. Shenzhen Capital is a state-owned capital operation company of Shenzhen City and one of the five enterprises selected by the national "Double Hundred Action" of Shenzhen City. Shenzhen Capital is an important part of the city-owned state-owned assets to expand the industrial chain, and the control and participation enterprises cover green building, intelligent manufacturing, new energy, securities, insurance, funds, guarantees and many other fields, and have formed an industrial layout dominated by emerging industries and financial finance.
The "national team" has struck many times
On December 1, China New Holdings Co., LTD. (referred to as "China New") issued an announcement that its new investment increased its holdings of China New Central Enterprises Technology Leading Index ETF and China Securities Central Enterprises Innovation Driven Index ETF on the same day, and will continue to increase its holdings in the future.
The increase in China's new investment action is following the Central Huijin Company announced on October 23 to buy exchange-traded fund (ETF), and there are national team funds to sell.
Previously, on October 11, the central Huijin again after eight years, the Bank of China, Agricultural Bank, Industrial and Commercial Bank, Construction Bank, a total of more than 476 million yuan, and said that in the next six months in their own name to continue to increase the shares of the state-owned four major banks in the secondary market; On October 23, Central Huijin announced that it had bought ETFs on the same day and said it would continue to increase its holdings in the future.
Public information shows that China Guoxin was established on December 22, 2010, and is one of the central enterprises supervised by the State-owned Assets Supervision and Administration Commission of the State Council. By the end of 2022, China's total new assets were nearly 860 billion yuan, and its net profit in 2022 was nearly 24 billion yuan. The new investment in the central enterprise ETF this time belongs to the equity operation platform of China's new state-owned capital operation. According to reports, the state new investment will take the initiative to play the leading role of capital, make full use of the hub function of the capital market, accelerate the transformation of state-owned capital form and optimization of the layout by invigorating the stock equity of listed companies of central enterprises and the stock assets in the field of infrastructure, and guide capital to gather in strategic emerging and scientific and technological innovation industries; Participate in the capital operation of central enterprises, help central enterprises do a good job in market value management, optimize the ownership structure and governance mechanism, improve industrial competitiveness, and enhance the control of the capital market; While supporting central enterprises to deepen reform, innovation and development, we will obtain long-term stable earnings and maintain and increase the value of state-owned capital.
Guohai Securities said that after the announcement of the new investment in the country, the market responded warmly, and the turnover of most central enterprise theme funds in a single day increased significantly or rose significantly. On the one hand, the increase in the holdings of state-owned capital operation companies helps to improve the market capital level, and at the same time helps to play the role of long-term capital in the development of high-tech industries and strategic emerging industries, and guides market funds to flow to high-quality allocation tools through the value judgment of state-owned capital.
Foreign investors have also come to scoop up the bottom
In the early hours of December 8, the Morgan Stanley China A-Share Index Fund (CAF) announced that it would buy up to 20 per cent of its outstanding shares at A price of 98.5 per cent of the fund's net asset value (NAV) per share, or about $51m at the latest closing price. The purchase will begin on January 22, 2024 and end on February 20, 2024. After the announcement of the above news, CAF US shares rose 13% after hours, the latest close up 6.11%.
As for the reason for the self-purchase, Morgan Stanley said in the announcement that it aims to increase shareholder value by providing the ability to repurchase shares at a discount to net asset value. According to public information, CAF has at least 80% of its assets invested in A-share listed companies to achieve its investment objectives. As of the end of October, the fund's top holding stock was Kweichow Moutai, with a holding ratio of 7.87%, and the fund's top five heavy holdings also included Yangtze Power, Gree Electric Appliances, China Merchants Bank and Mindray Medical, all leading enterprises in various fields.
Some analysts pointed out that Morgan Stanley (Morgan Stanley) at this time to sell its A-share theme fund buyback plan, to some extent, sent A signal to bottom A-shares.
There was another piece of news that also caught the market's attention. On December 8, China Securities Index Co., Ltd. announced that the CSI A50 index will be officially released on January 2, 2024. The China Securities A50 Index selects 50 securities with the largest market capitalization in various industries as index samples to depict the overall performance of securities of representative leading listed companies in various industries in the A-share market from A new perspective. The index compilation method focuses on industry balance, while introducing the concept of ESG sustainable investment, selecting 50 of the most representative listed company securities from the leading companies in the third-level industry and conforming to the investment scope of the Connectivity as index samples, facilitating domestic and foreign capital allocation of A-share core assets, and continuously advocating the concept of long-term investment and value investment. Insiders believe that after the release of the above index, it is expected to attract more foreign capital to allocate A-share core assets.
