Columnist Eide (Bkopleader)
Today’s repurchasing tomorrow can be stimulated by 10 times, and I do not have any doubt that back-purchase A can be constantly innovative and that Unit A can stand back at a stage. But the problem is that the market has never been grieved, and that the market has never been born in despair and, after a rebound, is more painful.
This week saw a two-day increase in the market, even when a large fall in the United States unit was only a blow to the opening city.
In late October, the Companies Act was amended to include - first, in the case of repurchase of shares by publicly listed companies; secondly, appropriate simplification of the decision-making process for repurchase of shares; and thirdly, supplementation of the regulatory requirements for repurchase of shares of listed companies.
On 9 November, three Ministries of the Board, the Ministry of Finance and the National Commission jointly issued the Opinion in Support of Repurchasing, which entered the height of the purchase. On the evening of 11 November, more than a dozen listed companies issued a repurchase.
However, it has to be said that this repurchasing opinion may have to be re-emerged. We have spoken on the rules of communication.
Continue to support marketed companies in raising funds for repurchasing their shares through the issuance of priority units and bonds.
Doubts: How can companies do so, in the form of priority shares and debt, essentially by financing in the form of claims, then repurchase (back of shares from secondary markets)? Can debt be repurchased to raise equity prices? Do the money borrowed not be used for actual operations, and not do it be “deficit”?
2 Encourage holding shareholders, real controllers of listed companies to actively increase their share in the market, promote repurchase of company shares and provide financial support.
Doubts: this cycle of equity-demand crisis is precisely the problem of the chain of funds of most of the controlling shareholders, real controlrs of publicly listed companies, more limited to a reduction in possession on 27 April 2016, less tenuous, and how many large shareholders have the capacity to repurchase? Of course, “support in terms of funding” — this is to motivate large shareholders to leverage?
Refinancing is requested by publicly listed companies upon their application for repurchase of shares not exceeding 10 times the total amount of repurchase in the last 12 months, and this refinancing issuing Board resolution is not subject to the interval of funding on the day prior to the date of arrival of the refinancing funds, and priority support is given to such refinancing applications.
Doubts: this article is the most ambitious and the most controversial. Let me say that today you repurchase 100 million, and tomorrow you will be granted 10 billion in the market.
The market is essentially a financing market, with market-based rebates being normal and financing is also fragmented. However, the A market company has been underrepresented in the Red Corporation, with low rates of subsidiarity and a very large number of bars. Now, in order to encourage repurchasing, is it promising that the future can be more expensive? This is certainly well-informed capital tenants are being planned, and it is definitely not small!
In general, it is difficult to introduce back-purchasing to stimulate equity, but it is not a strange of “head pains, battery”. In order for short-term stock markets to turn back, it is policy credit. What can be said is today’s equity buy-back crisis, but how many people are aware that 2015 can encourage large shareholders to carry out equity pledges to increase their shareholdings?
Then, even if repurchasing mitigates the current equity-demand crisis, how can the subsequent refinancing pressures be overcome? Since 2017, the regulatory level has deliberately limited refinancing to speed up the IPO, which is now returning to the original.
Indeed, even if the refinancing pressure generated as a result of repurchasing is not forthcoming, more than 20,000 million captive pressure for 2015-2017 is probably coming to an accelerated pace!
Today’s repurchasing tomorrow can be stimulated by 10 times, and I do not have any doubt that back-purchase A can be constantly innovative and that Unit A can stand back at a stage. But the problem is that the market has never been grieved, and that the market has never been born in despair and, after a rebound, is more painful.
(The authors of this paper present: researchers and participants in a financial market, followed by the Director of the Department of Finance, the Chief Executive Officer of a Nassauque financial institution and the Director of the Institute, etc., in Leveraging Black holes, etc.)