In fact, since this year, there are not a few listed companies that have been increased owing to their favourable operating performance or serious undervaluation. According to Tonghuashun statistics, 307 stocks have been increased by shareholders since 2019. Among them, the main reasons for shareholders to increase their holdings are to identify with the development prospects of listed companies and deviate from the fundamentals of valuation.
On March 16 this year, SICHUAN TOU Energy and SITIC Electric Power both issued announcements of changes in shareholdersrights and interests. According to the announcement, Sichuan Investment Energy received notification from Yangtze Electric Power. From April 3, 2018 to March 15, 2019, Yangtze Electric Power accumulated 220 million shares of the company, accounting for about 5% of the companys total equity. After the change, Yangtze Electric Power Holds 440 million shares, accounting for 10% of the companys total equity.
In addition to the initiative, there are also many companies passively trigger the increase, this year mainly focused on listed banks.
It is worth mentioning that the Shanghai Bank, which was raised by TCL Group, also announced in June that the closing price of its A-share stock for 20 consecutive trading days was lower than the companys latest audited net assets per share, triggering the banks stabilization measures.
Subsequently, on June 20? 15% of the total.
A securities firm research report pointed out that the shareholders of Agricultural Bank of Jiangsu intend to increase their holdings to stabilize the stock price, not only to fulfill their commitments, but also to show their confidence in the companys long-term development prospects, because the commitment itself reflects the confidence of shareholders in listed companies; after the renaming of the bank, its business scope has expanded to Suzhou, and sufficient capital will help expand its business scale. Optimizing the quality of assets and enhancing the ability to offset risks.
Wang Rong, a senior researcher of Suning Institute of Finance, said in an interview with the Journal of Securities that shareholdersincreasing ownership of listed companies can test shareholders strength and whether they have funds to increase their ownership; and that it can signal the outside world that shareholders have confidence in the future of the company if future enterprises can not make profits. Benefits, as shareholders, have no incentive to increase ownership; third, they have a stable effect on the refinancing of enterprises.
Other analysts pointed out that shareholder increase also helped to boost investors and market expectations, and played a positive role in the healthy, stable and sustainable development of the capital market.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425