echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Medical News > Medical World News > Boost market confidence!

    Boost market confidence!

    • Last Update: 2022-05-10
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    [Pharmaceutical Network Pharmaceutical Stock Market] Recently, the China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission and the All-China Federation of Industry and Commerce jointly issued a notice to further support the healthy development of listed companies, proposing to encourage listed companies to repurchase shares for equity incentives and employee stock ownership plans
    .

    In April, Shenzhen-listed companies repurchased their shares one after another.
    Among the repurchases, pharmaceutical companies also took active actions.
    Among them, Yunnan Baiyao plans to repurchase more than 1 billion yuan
    .

    On April 8, Yunnan Baiyao issued an announcement on the plan to repurchase the company's shares
    .

    The announcement shows that Yunnan Baiyao plans to use its own funds to repurchase the company's shares through centralized bidding or in a manner permitted by laws and regulations to implement employee stock ownership plans or equity incentive plans.
    shares
    .

    According to the announcement, the upper limit of Yunnan Baiyao’s repurchase shares is 9 million shares and the lower limit is 4.
    5 million shares, accounting for 0.
    7016% and 0.
    3508% of the company’s current total share capital respectively, and the repurchase price does not exceed 124.
    38 yuan per share
    .

    Calculated based on the upper limit of the repurchase quantity of 9 million shares and the upper limit of the repurchase price of 124.
    38 yuan per share, Yunnan Baiyao estimates that the repurchase amount will not exceed 1.
    11942 billion yuan.
    Accurate
    .

       Nanbaiyao said that in light of the company's operations, finance, research and development, debt performance capabilities and future development, the company's management believes that the repurchase will not have a significant adverse impact on the company's operations, finance, research and development, debt performance capabilities and future development
    .

       In addition, Hong Kong stock repurchases have also surged recently, and the number of repurchases by pharmaceutical companies is high
    .

    According to statistics, 102 companies in Hong Kong stocks have repurchased since this year, and from the industry distribution of repurchasing companies, the pharmaceutical industry accounts for a large proportion, with a total of 20 companies
    .

    These include 11 pharmaceutical companies, 2 healthcare equipment companies, 3 medical and medical beauty services companies, and 4 biotechnology companies, with a total repurchase of HK$1.
    789 billion
    .

    For example, WuXi Biologics and 3SBio participated in the repurchase this year
    .

       For example, the repurchase amount of WuXi Biologics reached 843 million Hong Kong dollars, of which the repurchase on January 4th and January 5th was consecutive, with a total of 10,435,500 shares repurchased, and the average repurchase price was 80.
    84 Hong Kong dollars per share
    .

    Although 3SBio only repurchased once, the repurchase amount also reached HK$581 million
    .

       The author was informed that Tigermed also issued an announcement recently.
    As of March 31, 2022, the company's special securities account for share repurchase has repurchased 2.
    4924 million shares of the company in a centralized bidding transaction, and the cumulative number of shares repurchased accounts for the company's total share capital.
    The ratio was 0.
    2857%, and the total transaction amount was 250 million yuan
    .

       Livzon Pharma also recently announced that as of March 31, 2022, the company had repurchased 3,404,400 H shares of the company, accounting for 0.
    36% of the company's total issued share capital as of March 31, 2022 and the issued H shares.
    1.
    09% of the total number of shares, and the total used capital is HK$87,004,400 (excluding transaction fees)
    .

    The above repurchase is in compliance with the H-share repurchase authorization
    .

       Regarding the repurchase of corporate shares, some people in the industry said that it is very common for companies or executives to buy back their own shares when the stock price is low.
    Earnings per share, on the other hand, also reflect the company's and management's optimism about the company's prospects, stabilizing and boosting investor confidence
    .

    Historically, large-scale corporate buybacks often herald a staged bottom
    .

       In addition, some people said that the recent intensive repurchase by pharmaceutical companies may be caused by comprehensive reasons
    .

    For example, some companies are very confident in future development based on their own market conditions, business layout, and R&D layout.
    Furthermore, they may want to boost market confidence through repurchase due to financing considerations
    .

       Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Related Articles

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.