Since September 24th, A-shares have been continuously rising. However, amidst the surge in stock prices, more than one hundred listed companies’ shareholders have chosen to reduce their holdings and exit the market, including both state-owned enterprises and private companies with state-owned shares.
On the evening of October 7th, several listed companies disclosed announcements of reducing their holdings, including National Integrated Circuit Fund, Taikang Life Insurance, various capital groups, major shareholders, and executives of listed companies. Additionally, there is also a phenomenon of companies cashing out in a “runaway-style”.
According to the announcement by CEC-Port, a distributor of electronic components, the companies planning to reduce their holdings include National Integrated Circuit Fund, National Wind Fund, CEC-Kunrun Fund, and CEC Development Fund.
Furthermore, many listed companies such as China Merchants Highways and BBMG Corporation have also disclosed their plans to reduce holdings.
*ST Zhongrun announced that the controlling shareholder is planning to transfer control rights, with the shares to be transferred accounting for about 20% of the total share capital. In addition, Guangaitechnology and Mingpu Optical Stockholders are also heavily cashing out their holdings.
It’s noted by reporters from Da Ji Yuan that according to media reports, companies such as National Integrated Circuit Fund, National Wind Fund, CEC-Kunrun Fund, CEC Development Fund, China Merchants Highways, BBMG Corporation, and other listed enterprises that are mainly state-owned or have state-owned enterprises as major shareholders are among those reducing their holdings.
Prior to this, there has been a noticeable increase in announcements of shareholder reductions by listed companies. From September 23rd to September 30th, 87 companies in A-shares disclosed recent reductions by shareholders or future reduction plans, which is double the number disclosed in the previous week (September 15th to September 22nd).
According to statistics from “First Finance” and Jinrongjie, from September 24th until now, over 100 companies have disclosed progress in reducing holdings or reduction plans. Some company shareholders have reduced nearly ten billion yuan in a single reduction, and some company executives and shareholders have collectively reduced their holdings and cleared out their stock holdings.
Additionally, according to “Capital Capital” based on official media and online news statistics, as of October 1st, there have been 189 listed companies that have issued announcements of reduction.
Since September 24th, A-shares have been continuing to rise, with the Shanghai Composite Index rising by nearly 20% in the past five trading days. On September 30th, the trading volume of both the Shanghai and Shenzhen stock exchanges exceeded 2.59 trillion yuan, breaking historical records.
However, despite the significant rise in stock prices, over a hundred listed companies’ shareholders have chosen to reduce their holdings and exit the market.
In May of this year, the China Securities Regulatory Commission issued the “Interim Measures for the Management of Share Reduction by Shareholders of Listed Companies” and related supporting rules, which strictly limit large shareholders’ reductions and indirect reduction methods.