According to the Securities Daily, on March 17, more than ten listed companies announced share repurchase plans.

Those companies include Rongsheng Petrochemical, Shangfeng Cement, Genesis, Torch Electronics, Little Bear Electric, Ruilian New Material, Magmitech, Changyang Technology, Jintian Copper, EDL, and Fu Miao Technology.

Earlier, the United States Group, Yutong Heavy Industry, and many other companies have issued share repurchase plans.

Ruilian New Material announced on March 15 to repurchase shares for 50 million yuan (7.856 million dollars) to 100 million yuan (15.713 million) for employee stock ownership plan or equity incentive.

Summit Cement said it would repurchase the company’s shares for 200 million yuan (31.425 million dollars) to 300 million yuan (47.137 million dollars) of its own funds. Genesis, Torch Electronics, Magmidt, Little Bear Electric, and Goldfield Copper all repurchased shares to be used for employee stock ownership plans or equity incentive plans.

Rongsheng Petrochemical, EDL, etc., said that the purpose of the share repurchase is to boost investor confidence.

On March 11, the United States Group announced that it would continue to buy back the company’s shares with its own funds, with a repurchase amount of 2.5 billion (392.808 million dollars) to 5 billion yuan (785.768 million dollars). The repurchase price does not exceed 70 yuan (11 dollars) per share to implement the company’s equity incentive plan or employee stock ownership plan.

Aside from the ten listed companies, according to Apollo News, on March 8, more than 40 companies in Shanghai and Shenzhen issued repurchase plans.

In the same article on Caixin, Tiehan Tong, an expert in finance and taxation and a special professor at the School of Management of Xi’an Jiaotong University, told the Securities Daily about the main factors of share repurchases by listed companies.

The first one is to give the market and investors a signal of optimism about the company’s future development through share repurchases, which can play a positive role in maintaining the share price or even pushing up the share price and increasing the value of the enterprise.

The next reason is to serve as a source of stock to implement the company’s share incentive or employee stock ownership plan through share repurchases.

Third, share repurchases can adjust the company’s registered capital, optimize the capital structure, and ensure the company’s control.

In addition, it has a certain effect on enhancing the company’s profitability and improving the stock’s investment value, enabling investors to share in the company’s growth dividends better.

Tong Tiehan also reminded that the share repurchase program should be legal and feasible and not harm shareholders’ legitimate rights and interests.

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