On July 16th, Cai Lianshe News (Reporter Wang Haichun) reported that multiple real estate developers' shareholders and their company management have implemented 'stock protection' plans in order to stabilize market confidence.

On July 16th, Xinhu Zhongbao released an announcement regarding the progress made in the plan to implement the first shareholder's stockholding increase and to carry out the action plan of 'Improving Efficiency and Delivering Return'. In this announcement, Xinhu Zhongbao published the latest arrangements and plans for the shareholders' stockholding increase by the largest shareholder.

Regarding the stockholding increase plan, Xinhu Zhongbao disclosed that based on their confidence in the company's future development prospects and recognition of the company's value, Quzhou Zhibao Enterprise Management Partnership (a limited partnership) plans to increase the company's shares by means of centralized bidding through the trading system of the Shanghai Stock Exchange from July 16th, 2024, within a period of six months, with a minimum amount of no less than 50 million yuan, a maximum of no more than 0.1 billion yuan, and the increase in the price of shares will not exceed 2 yuan / share.

Public information shows that Quzhou Zhibao, the subject of this stockholding increase, is the largest shareholder of Xinhu Zhongbao. The company revealed that Quzhou Zhibao completed a round of stockholding increase plan from 1st to 11th July 2024. Using centralized bidding, they have completed the cumulative increase of 12.1593 million shares, accounting for 0.143% of the company's total share capital and the increase amount was 20 million yuan.

Xinhu Zhongbao stated that the funds for the stockholding increase in the company are self-owned funds of Quzhou Zhibao. Quzhou Zhibao has promised not to reduce its holdings of the company's shares during the implementation period of the stockholding increase plan and the statutory period.

'Increasing stockholding in listed companies is not a novel operation, but during the low period of the stock market and market, shareholders and management of listed companies can release their positive expectations for the company through increasing shareholdings, which aims to enhance market confidence through practical actions.' said Yan Yuejin, Director of the E-house Research Institute.

In fact, it is not just Xinhu Zhongbao that has implemented a stockholding increase plan.

On the evening of July 15th, Vanke announced the latest progress in the stockholding plan of the company's core management personnel for its A-share stocks.

According to the implementation of the stockholding plan, Vanke's core management personnel have raised a total of 200.74 million yuan in self-raised funds and commissioned Shenzhen Jiahongxin Industrial Co., Ltd. established by employees to implement the stockholding plan.

Shenzhen Jiahongxin, as the initiator, established Huaneng Trust.Yingxin No. 1 Service Trust and Huaneng Trust.Yingxin No. 2 Service Trust to implement the stockholding increase. Among them, 15 full-time directors, supervisors, and senior management personnel, group committee members, and other participants contributed approximately 74.31 million yuan.

As of July 15th, Shenzhen Jiahongxin has completed the stockholding increase plan through Yingxin Trust plan. This cost a total of 200.08 million yuan, accounting for 100.04% of the initial promised stockholding increase amount. They have purchased a total of 29,564,128 A-shares of Vanke from the secondary market, accounting for 0.25% of the total shares of the company (including treasury stocks). The remaining 0.66 million yuan of funds in the Yingxin Trust plan will be used to pay daily expenses.

Reporters learned that the main body of Vanke's stockholding increase includes full-time directors, supervisors, and senior management staff, major management personnel of the headquarters, business development and operation departments, core personnel, etc. They voluntarily lock in their shareholdings for two years.

'To enhance market confidence, the management team and key personnel of the company jointly participate by increasing their holdings to the maximum extent possible within their abilities, to express their full confidence in the company's prospects and their resolution to work together. In this stockholding increase plan, the management team has increased holdings of no less than one-third of the total amount, which helps to promote the package program of streamlining and improving, achieving results in stages as soon as possible, and believes that the company will resume healthy development in the future.' Vanke said.

Analysts from Sinolink Securities believe that the core staff of Vanke intend to increase their holdings of the company's A-shares based on their long-term confidence in the industry and the company's future development, and this will also enhance investor confidence.

In addition to Xinhu Zhongbao and Vanke, enterprises such as China Fortune Land Development, Beijing North Star, China Overseas City Holdings, and Suning Universal have also recently announced arrangements for the stockholding increase of their shares.

According to the information released by China Fortune Land Development on July 11, Chairman and actual controlling shareholder Wang Wenxue notified that he plans to continue to increase his shareholdings in the company within six months from July 11, 2024 using his own funds through the Shanghai Stock Exchange trading system at a centralized bidding method.

China Fortune Land Development also disclosed that the plan for some of the company's directors and senior management to increase their shareholdings in the company has been completed. As of July 10, the main body of the increase has cumulatively increased 5,789,900 shares of the company’s shares, accounting for 0.148% of the total share capital of the company, with a cumulative increase amount exceeding RMB 59.2 million, exceeding the lower limit of the plan.

Beijing North Star also disclosed the progress of its controlling shareholder's shareholding plan on July 11: On July 10, 2024, Beichen Group initially increased its unlimited A shares in the company through the Shanghai Stock Exchange's centralized bidding method by 6,511,700 shares, accounting for 0.24% of the company's A shares and 0.19% of the company's total share capital. The increase in the amount exceeds RMB 83.2 million (excluding transaction costs).

Prior to this, Shenzhen Overseas Chinese Town and Suning Universal also announced their plans and implementations for shareholders and managements to increase their holdings.

On June 23, Shenzhen Overseas Chinese Town released an announcement that the controlling shareholder, Overseas Chinese Town Group, plans to increase its holdings of Shenzhen Overseas Chinese Town through centralized bidding or bulk trading within the next six months, and the expected increase amount is between RMB 16.5 billion and RMB 33 billion.

Suning Universal announced on July 3 that the share-increasing plan formulated by the company's controlling shareholder, some directors, supervisors, and senior management will be implemented within six months from February 6, 2024. The planned increase amount is not less than RMB 20 million and does not exceed RMB 40 million, and the planned increase price does not exceed RMB 4 per share.

As of the close of July 1, 2024, the main body of the planned increase increased the company's shares by a total of 10,214,800 shares through centralized bidding in the secondary market, accounting for 0.34% of the company's total share capital. The total amount of the increase in holdings is RMB 21.1787 million. The planned increase has been completed.

Analysts pointed out that in the face of new changes in the current market, there are some new features in the recent shareholding increases by some real estate shareholders and management. "Affected by the superimposed factors of the capital market and real estate industry fluctuations, some real estate stocks have undergone significant adjustments. In addition, there are still expectations of adjustments in the market, so real estate stocks in general are under considerable pressure. By increasing holdings, on the one hand, investors' confidence in individual stocks can be strengthened. On the other hand, promoting such plans is conducive to enhancing its expectations for the industry and the market to be bullish, which is also positive for stabilizing the market," said Yan Yuejin in an interview with reporters.

"Under such circumstances, it is not only a way for enterprises to further enhance market confidence, but also these measures will form a fairly positive and positive guiding effect in the market," Yan Yuejin added. "Another phenomenon worth noting is that companies such as China Fortune Land Development that are facing certain fund pressures, their shareholders and management also launched and implemented shareholding plans, which in a way reflects that they not only believe that the company has the ability to penetrate the cycle, but more importantly, they are bullish about the prospect of the industry's long-term development."

"Therefore, overall, increasing shareholdings is not only a way for companies to further enhance market confidence, but more importantly, these measures will also have a quite positive and positive guiding effect in the market," Yan Yuejin further stated.

"Increasing shareholdings is not only a way for companies to further enhance market confidence, but more importantly, these measures will also have a quite positive and positive guiding effect in the market," Yan Yuejin further stated.