BEIJING, Oct. 19 (Xinhua) -- China A-share listed companies spent huge on stocks repurchase (repo) this year and 327 of them spent 43.993 billion yuan on shares repo by Thursday, reported Securities Daily Friday.
Since the start of this year, 12 A-share listed firms have churned out their second round of stocks repo this year.
Among the 327 A-share listed companies, more than 75 percent of them kicked off the stocks repo to implement equity incentive plans.
Yin Yue, chief market analyst with Yuekai Securities told the newspaper that proposing stocks repos hinted confidence of future corporate development and acknowledgement of corporate value and using the repurchased stocks as equity incentives for employees is helpful to further optimize corporate governance structure.
For the secondary market, massive stocks repos are good to spur investor confidence and boost stock prices, held Yin.
In terms of stocks repo value, 96 A-share listed companies poured over 100 million yuan for stocks repos this year and nine of them spent more than one billion yuan, with Gree Electric Appliances, Inc. of Zhuhai (000651.SZ) topping all with 5.182 billion yuan of stocks repos by Thursday.
Year to date, 185 of the 327 A-share listed firms have completed their stocks repos and 142 ones are busy repurchasing their stocks.
The 327 A-share listed companies are mostly engaged in home appliance, non-banking finance, and bio-pharmacy sectors, with respective shares repurchased valuing 7.36 billion yuan, 4.828 billion yuan and 3.939 billion yuan. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
