No one knows when the stock market bottomed out, but recently both listed companies and institutional investors have begun to actively enter the market, indicating that big money is beginning to recognise current market valuations.

Listed companies start a wave of repurchase

Wind data displayAs of April 22, this year, more than 400 listed companies have announced the completion of buybacks or issued buyback plans, a total of 6.429 billion shares repurchased, with a total repurchase amount of 56.616 billion yuan, a substantial increase over the previous year.

Well-known companies such as Vanke A, the company plans to raise its own funds to buy back shares of no less than 2 billion yuan and no more than 2.5 billion yuan. The company said that the move is to safeguard the value of the company and shareholders' rights and interests, and boost investor confidence.

Another example is Yunnan Baiyao, which issued a buyback announcement on the evening of April 20, intending to use its own funds to buy back the company's shares. It is expected that the repurchase amount will not exceed 1.119 billion yuan, which will be used to implement the employee stock ownership plan or equity incentive plan.

Wind data displayThe company with the highest repurchase amount as of April 22nd is Baosteel, which has bought back more than 3.5 billion yuan.Companies with more than 1 billion buybacks include BOE A, China Unicom, SF Holdings, SAIC, 360 and Zhengtai.

The highest proportion of repurchase amount to total equity is Zangge Mining, as high as 19.65%.It is closely followed by brilliant Technology and Penghouse shares.

According to founder Securities statistics, from the amount and times of repurchase, since the rise of A-share repurchase in 2012, there have been two rounds of buyback boom, namely 2018Q4 to 2019Q3 and 2020Q3 to 2021Q3.Since the beginning of 2022, the buyback boom in the A-share market has resumed. Listed companies have implemented repurchase amounts of about 27.2 billion yuan, and more than 400 companies have implemented repurchases during the year.

Stock buybacks are mainly concentrated at the bottom of the market or the downward range of the industry.In the first buyback tide, the repurchase amount is evenly distributed in the industry, and the A-share as a whole is in the downward stage. In the second buyback wave, the repurchase amount is obviously divided among different industries, and the overall trend of A shares is strong, but the stock price of the home appliance industry continues to decline, and the buyback enthusiasm of the home appliance industry is high.

Stock buyback has little impact on stock price in the short term, but has a supporting role in the long run.After the listed company issued the buyback plan, it had little impact on the stock price in the short term (regardless of the rise and fall of the day of the plan), reaching an average income of 5.09% and 13.18% respectively half a year later and 13.18% a year later, and an average excess return of 5.27% a year later.

The proportion of stock repurchase amount to the total market value of the company is proportional to the excess return for a long time, that is, the higher the share, the better the performance of long-term individual stocks. The excess return of the companies whose repurchase amount accounts for more than 5% of the company's total market capitalization continues to be higher than that of the relatively low companies, and the average excess return of the high proportion companies is 10.62% after one year.

The fund actively buys itself.

In addition to active buybacks of listed companies, fund managers in the secondary market also set off a wave of self-purchase.As of April 21, 2022, 67 fund companies have made their own purchases, with a total of 127times, with a total amount of 2.08 billion yuan.A number of star fund managers have also bought their own confidence.

On April 8, Southern Fund announced that based on its confidence in the long-term, healthy and stable development of China's capital market, it will use its inherent funds to subscribe to its partial stock public offering fund Nanfang Haoyi enterprising Jushen (FOF) 20 million yuan for a three-month holding period. At the same time, the Southern Fund also said that it will continue to apply for the company's partial stock public offering funds in the near future, with a total contribution of not less than 100 million yuan.

On April 2, Xingyin Financial announced that based on its confidence in the long-term and sound development of China's capital market, it will invest about 1 billion yuan of its own funds in a series of financial products managed by the company. Prior to this, Everbright Financial Management, China Post Financial Management, and South Bank Financial Management have announced their own purchase of their own products.

In late March, Everbright Financial Management, South Bank Financial Management and China Post Financial Management issued announcements one after another, using about 200 million yuan, 500 million yuan and 650 million yuan respectively to invest in the company's financial products.

On March 1, the Qianhai Open Source Fund announced that Cui Yulong, the stock champion of last year, had recently invested 500000 yuan each for the management of Qianhai open source public utility stocks, Qianhai open source emerging industry mix, and Qianhai open source new economy mix, totaling 1.5 million yuan, and the holding period was not less than one year.

For the reasons for self-purchase, Cui Yulong said that on the one hand, considering that the fund has opened purchase restrictions, on the other hand, the main factor is that the recent pullback of the new energy sector is more, but the fundamentals of the industry are excellent. short-term market trends deviate greatly from plate fundamentals, so there are current or better medium-and long-term layout opportunities.

The more Hong Kong stocks fall, the more they buy.

Since the beginning of this year, the Hong Kong stock market has continued to be in the doldrums, as the leader of Internet technology in Hong Kong stocks.$Tencent (00700.HK) $It's not immune. As of the latest data, Tencent closed at HK $340 per share, down more than 23% so far this year.

In the early morning of April 22, Duan Yongping posted through social media that he had just bought it for $42.71.$Tencent (ADR) (TCEHY.US) $。

For Tencent, Duan Yongping has always been fond of, since last year many times basked in order to buy Tencent, there is quite a "falling more and more buying" momentum.

On August 4, 2021, Duan Yongping also posted: "if you buy a little Tencent today, you will buy more if you drop it." "

On February 28 this year, Duan Yongping posted again, "(Tencent) is lower than the price I bought last time, so buy some more tomorrow." Subsequently, Duan Yongping posted his record of issuing orders in the comments area, which set $53.50 to buy Tencent, with an estimated total transaction value of $5.35 million.

On March 15, Duan Yongping said he would sell Berkshire and continue to buy from the bottom to increase his position in Tencent.

In addition to large-scale investor buybacks, Tencent himself has invested about HK $6.4 billion in real gold and silver to buy back shares so far this year, and the scale of the repurchase has exceeded the scale of the buyback for the whole of last year.

Many Internet companies have launched corresponding share buyback programs. For example, BABA announced on March 22 that he would increase the total amount of share buybacks from US $15 billion to US $25 billion; JD.com and Vipshop Holdings Limited sold US $3 billion and US $1 billion respectively; and XIAOMI Group, Bilibili Inc. and others also launched share buyback plans.