buy-back program holding sounds of heaven

this year opened a listed company to buy back A shares prelude. Notice its said to be not less than 3.50 yuan / share buy-back price of not more than 2000 million shares. Buy-back ratio of the total share capital is currently 2.11 percent, accounting for the actual flow of the share capital of 2.21 percent. Music has also become a day of holding the Commission on October 9 release, "in order to focus on listed companies bidding to buy back shares of the way the transaction to add that" since the first announced plans to repurchase shares of listed companies.

Listed companies to buy back shares is not nothing new. In 2005, the China Securities Regulatory Commission in order to share with the smooth progress of reform, has issued "a listed company to buy back public shares management (Trial)" in order to boost confidence in the market. Shanghai's Handan Iron & Steel [0.00 0.00%] (600,001, the shares it) becomes the first to eat "crab", share buy-back program announced at that time the only reason for that is "seriously underestimated the value of the investment." In fact, in the days before the holding tone, a good 10,000 10,000 [2.98 2.41%] (600,576, it shares) a lifting of restrictions on the sale of shares on April 21 to May 12 period, for a cumulative reduction of more than 1% of the total share capital The shares, the SSE has been punished since the shareholders will also have to "buy back" to reduce the excess shares. In June of this year, the city of Shenzhen Franc group [10.83 3.14%] (000,513, it shares) notice of the proposed investment is not more than 160,000,000 Hong Kong dollar B shares buy-back plan, which also become the first buy-back B shares of listed companies.

The current weak stock market die hard. September 18, and then the three have been good out of the rescue package, in addition to the market in the short form of "blowout", its effect has been further hit record lows in the stock was in the process of annihilation. And have been interpreted as "the end" of 1800, in the end did not become "the end of the market." On the other hand, has a "wind vane" of the Shanghai Composite Index also hit a year low of 1664.93 points. In October in Shanghai and Shenzhen stock index also set down one after another record, which fell 24.63 percent Prev Close, a 14-year, the biggest decline, Shen Chengzhi also a record since August 1991, the biggest decline since.

Moreover, in October of this year's huge drop in stock index climbed to historic highs, fell by as much as 62.54 percent of the background, the stock market's weakness is self-evident. The growing financial crisis, the size wanton non-listed companies to sell as well as the performance slowdown, and so is the root cause of this pattern, on the other hand, A-share market listed companies grow most of the poor, it is difficult thick shareholders has been reported, does not have the "value of the investment "The condition is also one of the factors that can not be ignored. A-share market is often will have ups and downs in the market, only certain institutional investors hold high the banner of the value of the investment, the value of it is speculative.

Handan Iron & Steel and the buy-back, holding the sound-day repurchase its place in had 95.16 percent of shares in circulation under the situation. In addition, the buy-back in oil and acts of listed companies, such as the existence of different holdings, the shares once the write-off, it's nearly 70,000,000 yuan investment funds will be "up in smoke." This is a huge decline in the current stock market financing function is in serious distortion of the case even more valuable, and also to highlight the listed companies themselves bear the responsibility of the Trust.

According to the days of holding the sound is estimated that the buy-back after the completion of the earnings per share 1.06 percent, increase the return on equity of about 1.33 percent. To buy back shares and write-off, and other conditions remain unchanged under the premise that there is no doubt listed companies to increase net asset value per share, and earnings per share thickening, and thus enhance the listed company's "gold content" and will be beneficial to the listing The company's investment value. On the one hand, reflect the listed company for the future development of confidence, on the other hand, can boost investor confidence in the stock. As a result, the sound-day holding of the buy-back scheme, indeed worthy of other listed companies to follow.

Improve the investment value of listed companies, buy back shares which may be written off as an option. Sounds of Heaven has started holding the "first of a series of" then there will be those who do?