Cailian News Agency, October 9th (Reporter Wu Chao) The A-share market continues to soar, triggering a wave of share reduction among shareholders and executives of listed companies. Since September 24th, the Shanghai and Shenzhen stock indexes have risen sharply on multiple trading days, with the trading volume in the two cities repeatedly hitting historic highs. Against this market backdrop, over 200 listed companies have disclosed plans or progress of shareholders and executives reducing their holdings in the past five trading days, with significant reductions and complete sell-offs not uncommon.

According to statistics from Cailian News Agency reporters, from September 24th to September 30th, there were 186 listed companies that disclosed plans or progress of shareholder reductions, more than twice the number from the previous week.

As of the evening of October 8th, another 95 listed companies have disclosed plans or progress of shareholder reductions, with 52 of them newly disclosing reduction plans.

In the reduction plans disclosed on the evening of the 8th, the company with the highest single share reduction is Hehuiguangdian (688538.SH). Shareholders Shanghai Integrated Circuit Industry Investment Fund Co., Ltd. and Shanghai Science and Technology Entrepreneurship Investment (Group) Co., Ltd. (forming a concerted action relationship) plan to reduce their total shares by no more than 0.277 billion shares, i.e. no more than 2.00% of the total share capital. Based on the closing price today, the Integrated Circuit Fund and Science and Technology Investment are expected to reduce their holdings by 0.742 billion yuan.

Additionally, in the single share reduction disclosed on the 8th, the company with the highest proportion of single share reduction to the total share capital is Wanlangcisu (603150.SH). Shareholder Anhui Gaoxin Jintong Annaik Erqi Venture Capital Fund plans to reduce no more than 7.2 million shares, i.e. no more than 8.42% of the total share capital. Based on the closing price today, Jintong Annaik is expected to reduce its holdings by 0.203 billion yuan. As Jintong Annaik holds 8.42% of the total shares of the listed company, this transaction may be a complete sell-off.

Meanwhile, in the single share reduction plans disclosed from September 24th to 30th, the shareholder with the largest number of shares to be reduced is China XD Electric (601179.SH)'s shareholder General Electric Singapore, who plans to reduce the company's shares by no more than 0.154 billion shares between October 29, 2024, and January 28, 2025, i.e. not exceeding 3% of the total share capital. Based on the closing price today, General Electric Singapore is expected to reduce its holdings by 1.307 billion yuan.

It is worth noting that executive share sales have also become a significant part of this wave of reductions. For example, Zhu Wenxiu, General Manager of Liziyuan (605337.SH), and Su Zhongjun, Deputy General Manager, among 6 executives plan to collectively reduce their holdings; Zhang Jingzhong, Chairman of Sichuan Furong Technology (603327.SH), and Hu Junqiang, General Manager, among 6 executives also announced collective share reductions.

In addition, jiangsu shemar electric (603530.SH) actual controller Chen Xiaoqin, shanxi huhua group (003002.SZ) actual controller Qin Yuezhong, huafu fashion technology (301011.SZ) actual controller Su Benli, etc. have also disclosed shareholding plans.

Market participants told Caixin reporters: The recent wave of share sales in the A-share market reveals the cautious attitude of some listed company shareholders and executives towards the current market valuation. Although the overall market performance is strong, they may believe that the current stock prices are close to or have reached their expected targets. Especially for some stocks that did not perform well in the previous market, the assets of related shareholders are in a "locked" state. These shareholders are eager to take advantage of this current uptrend to "release themselves" from this situation. Although this behavior to some extent increases market liquidity, it may also raise concerns about the future trends of the target stocks in the market, especially when the scale of share selling is significant, it may have a negative impact on market sentiment.

In addition to the traditional methods of concentrated bidding and bulk trading, many cash-out parties also choose the method of agreement transfer for shareholding reduction. Market analysts point out that agreement transfer has a relatively small impact on the secondary market. At the same time, listed company shareholders can negotiate specific terms and trading schemes with institutions such as private equity funds, improving trading efficiency. For example, recently, huafu fashion (002042.SZ) controlling shareholder Huafu Holdings and yijiahe technology (603666.SH) actual controller Zhu Fuyun have both chosen the agreement transfer method for shareholding reduction, cashing out 34.3 million yuan and 168 million yuan respectively.