Photo taken on June 13, 2019 shows an outside view of the Shanghai Stock Exchange in Shanghai, east China. (Xinhua/Fang Zhe)
BEIJING, Feb. 2 (Xinhua) -- After many A-share companies started their stocks repurchase plans on January 31, 30-plus more announced similar share repo plans on February 1, reported Xinhua Finance on Thursday.
They altogether amounted up to over 100 ones and part of the A-share market listed companies that had unveiled their stocks repo plans by February 1 saw their stock prices edging up notably afterwards on Thursday.
Under their repo plans, many A-share market listed companies said to cancel the repurchased shares in the future.
Industry experts noted that repurchasing stocks is an elementary institutional arrangement for listed companies and serves as an important vehicle for listed companies to optimize capital structure, reward investors, improve corporate governance, and stabilize stock prices.
In December 2023, China Securities Regulatory Commission issued the amended stocks repurchase rules for listed companies, which brings more convenience for listed companies to buy back stocks and enriches the restriction mechanism for stock repos of listed companies.
In mature capital markets, many companies usually churn out massive share repo plans every year and a majority of them prefer to cancel repurchased shares to raise directly the earnings per share (EPS) as a welcomed way to reward investors, said Yang Delong, chief economist with First Seafront Fund. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
