BEIJING, May 30 (Xinhua) -- Chinese A-share companies scaled up in the past months of this year their shares buyback to bet on a bright business prospect for future, reported Xinhua-run China Securities Journal on May 29.
By 16:00 o'clock on Wednesday, 1,491 A-share companies repurchased about 85.868 billion yuan of their shares this year, hitting an all time high as compared with the same periods of previous years, showed statistics with Wind, a financial data provider in China.
Among these A-share companies, WuXi AppTec (603259.SH), a Chinese medicine R&D company, has bought back around two billion yuan of shares by May 29 in this year.
Apart from Sanan Optoelectronics (600703.SH) that repurchased 1.99 billion yuan of shares, three more A-share companies including Contemporary Amperex Technology (300750.SZ) all reported shares repurchases in excess of one billion yuan.
Four more A-share companies have bought back over 900 million yuan of shares and in aggregate, there were 18 A-share companies that had purchased back shares of more than 500 million yuan by late Wednesday this year.
Analysts with GF Securities said that repurchasing shares at an appropriate timing is good for listed firms to optimize capital structure, stabilize or improve share prices and enhance shareholder control.
At present, most A-share companies repurchase shares for equity incentives or nullifying shares in China, noted Yi Xiaobin, equity investment director of Timewise Investment, adding that their repurchase spree in this year reveals the overall undervaluation of A-shares and their optimism for the future, both of which are helpful to optimize their financial indicators and restore market confidence.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
