Stock buybacks, holdings increase, and refinancing continues to be implemented

　　Repurchases, holdings, and refinancing have opened up a new path for market value management of listed companies. After the stock repurchase and holding increase loan policy was released, repurchase loans and shareholder holding increase loans for A-share listed companies are being implemented one after another, and repurchase and holding increase and loan projects are gradually becoming “normalized” in the capital market. According to incomplete statistics from a Securities Times reporter, more than 40 companies have disclosed the use of special loan funds to repurchase shares or increase shareholder holdings.

　　Analysts believe that the introduction of the stock buyback and holdings increase loan policy will help the long-term stable development of the A-share market.

　　Image source: Pexels

Repurchases, holdings, and re-lending are normalized.

　　On the evening of October 29, Taiyuan Heavy Industry became the first listed company in Shanxi to use loan funds to increase its shareholding. The controlling shareholder Taizhong Group will increase its shareholding in the company through centralized bidding transactions. The amount of the increase shall not be less than 60 million yuan. It exceeded 120 million yuan, and the funds for the increase in holdings came from the company's special loans for increasing its holdings and its own funds.

　　Recently, Pure Technology announced that the company will repurchase shares in a centralized bidding transaction. The repurchase amount ranges from RMB 80 million (inclusive) to RMB 160 million (inclusive). The source of funds is a special loan provided by Industrial Bank Shanghai Branch. and own funds.

　　According to incomplete statistics from a reporter from the Securities Times, nearly 40 companies have obtained repurchase and holding refinance loans so far, and the relevant loan amount disclosed far exceeds 10 billion yuan. Many companies have successively disclosed specific repurchase or shareholding plans, and it is believed that the above list will further increase.

Promote long-term stability of A shares

　　Chen Shi, manager of Mingze Investment Fund, said. “The introduction of the stock buyback and holdings increase loan policy will help the long-term stable development of the A-share market.” The introduction of this policy will undoubtedly inject new vitality into the market and will also have a profound impact on the A-share market.

　　On the one hand, listed companies use lower-cost loans to repurchase and increase holdings of stocks, thereby guiding funds to invest in high-dividend assets and cultivating medium- and long-term value investment concepts; On the other hand, listed companies are carrying out repurchasing and holding increase, and the first phase of repurchase and holding increase loan is expected to provide 300 billion yuan in incremental funds for the A-share market, which will not only increase market liquidity but also help enhance investor confidence in the company and the market, as well as stabilize stock prices and market sentiment.