94 Companies Announce Major Shareholder Increase Plans Within the Year

Securities Daily Reporter Gui Xiaosun and Li Haoyue

According to data from Wind, as of March 19, 94 listed companies’ major shareholders (including actual controllers, directors, supervisors, senior management, and shareholders holding more than 5%, hereinafter referred to as “major shareholders”) have announced plans to increase their holdings (based on the first announcement date). From the information disclosed in these announcements, most of these major shareholders cite confidence in the future and the desire to boost investor confidence as the main reasons for their plans to increase holdings.

On March 19, Zanyu Technology Group Co., Ltd. issued an announcement that the company’s directors and all senior management intend to increase their holdings of the company’s shares through methods permitted by the Shenzhen Stock Exchange. The plan is to buy back shares within six months of the disclosure date, with a total amount not less than 12.5 million RMB. The announcement states that the purpose of the buyback is “based on confidence in the industry and the company’s future development prospects, as well as a reasonable judgment of the company’s stock value, while also enhancing investor confidence and effectively safeguarding the interests of small and medium investors and maintaining market stability.”

Sui Dong, a researcher at Qianhai PaiPaiNet Fund Sales Co., Ltd. in Shenzhen, told Securities Daily that in the current volatile market environment, the concentrated buyback plans announced by major shareholders of listed companies can provide substantial support to the market and individual stocks in multiple ways: “First, they transmit strong confidence, directly stabilizing market sentiment. When major shareholders use their own funds to buy back shares, it is seen as confirmation of the current undervaluation of the stock and the company’s long-term value, which can effectively ease market panic and curb irrational selling. Second, they improve the supply-demand structure of stocks, creating a ‘safety cushion’ for prices. Buyback actions directly reduce the circulating shares in the market, and when combined with other measures like share repurchases, can support stock prices at critical levels and restore investor confidence. Third, they enhance the company’s attractiveness and guide long-term funds into the market. Especially when buybacks are concentrated in high-dividend sectors, the combination of ‘buyback + dividend’ can significantly increase asset allocation value, attracting long-term capital such as insurance and social security funds, providing liquidity support for the market.”

Sui Dong suggests that besides buybacks, listed companies can adopt multi-dimensional measures to maximize the effect of boosting market confidence. For example, implementing “buyback and cancellation of shares” simultaneously is more convincing financially than simple buybacks. Coupled with stable or high cash dividends, creating a “buyback + repurchase + dividend” closed loop, backed by real returns, can solidify the logic of value investing. Additionally, high-frequency, transparent information disclosure is necessary to actively interpret the company’s industry logic, operational highlights, and future development to the market, ensuring that buyback actions are supported by clear fundamentals and creating a resonance between “action” and “communication.”

“Companies can also launch employee stock ownership plans to deeply bind the core team with the company’s long-term development, building a community of interests among management, employees, and shareholders, and conveying stronger internal confidence to the outside world. By increasing R&D investment and optimizing layout, they can enhance the certainty and growth potential of core business profits, providing a solid foundation for all market actions through sustained good operational results,” Sui Dong said.

Reviewing these companies’ announcements shows that after announcing plans for major shareholders to increase holdings, listed companies also specify details such as the range of increase and funding sources. Moreover, some companies have quickly completed their buyback plans, with implementation completed just over a month after the announcement.

“Major shareholders of listed companies need to disclose information such as the subject, amount, quantity, price, and source of funds for their buyback. Additionally, since it is currently the earnings disclosure period, attention should also be paid to ‘window period’ issues,” said Hu Zhenyi, Chief Investment Officer of Shanghai Honghan Investment Management Co., Ltd., to Securities Daily. He emphasized that in addition to buybacks, it is crucial for listed companies to strengthen their operational fundamentals and improve performance to reinforce market confidence. Using “certainty” to hedge market doubts—such as earnings forecasts, operational data, major contracts, and bid-winning situations—should be promptly communicated to investors.