A-Share Market: SOEs Lead Buy-ins, Chengdu-Chongqing Sector Surges
The "9·24" market trend has evolved to the present, with the market gradually becoming differentiated and market hotspots constantly switching.
On October 16th, the Chengdu-Chongqing sector surged, with more than 30 companies including Sichuan High-tech Development (000628.SZ), Sichuan Road and Bridge (600039.SH), and Chengdu Road and Bridge (002628.SZ) hitting the daily limit; in Chongqing, 10 companies including Chongqing Port (600279.SH), Chongqing Steel (601005.SH), and Chongqing Construction Engineering (600939.SH) hit the daily limit.
In addition to the Chengdu-Chongqing sector, central enterprise (CE) share increases have become another bright spot in the A-share market. Since October 14th, CEs led by China Merchants Group Co., Ltd. (hereinafter referred to as "China Merchants"), China Construction (601668.SH), and China Energy Construction (601868.SH) have announced major shareholder share increases or company repurchase plans, forming a sharp contrast with other listed company shareholders who reduce holdings at high prices.
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On October 16th, the Shanghai Composite Index closed at 3,202.95 points, up 0.05%; the Shenzhen Component Index closed at 9,965.02 points, down 1.01%. The two markets were active, with a total transaction volume still exceeding one trillion yuan, at 1.38 trillion yuan.
Central enterprises take the lead in share increases.
China Merchants is a state-owned backbone enterprise directly managed by the central government, headquartered in Hong Kong, and is one of the earliest Chinese-funded enterprises established and operated in Hong Kong, as well as a century-old central enterprise.
On October 14th, eight listed companies under China Merchants, including China Merchants Shekou (001979.SZ), China Merchants Port (001872.SZ), China Merchants Shipping (601872.SH), China Merchants Highway (001965.SZ), China External Transportation (601598.SH), Liaoning Port Shares (601880.SH), China Merchants South Oil (601975.SH), and China Merchants Jiyu (001914.SZ), disclosed repurchase or share increase plan announcements.
China Merchants Shekou, China Merchants Port, China Merchants Shipping, China Merchants Highway, China External Transportation, and China Merchants Jiyu, six listed companies, announced share repurchase plans. The upper limit of the repurchase price for all shares is not higher than 150% of the average transaction price of the company's stock in the 30 trading days before the board of directors passed the resolution to repurchase shares. The repurchased shares are intended to be fully canceled and reduce the company's registered capital in the future. Among them, the total amount of China Merchants Shekou's repurchase is 351 million yuan - 702 million yuan, China Merchants Port's repurchase total amount is 195 million yuan - 389 million yuan, China Merchants Shipping's repurchase total amount is 222 million yuan - 443 million yuan, China Merchants Highway's repurchase total amount is 310 million yuan - 618 million yuan, China External Transportation's repurchase total amount is 271 million yuan - 542 million yuan, and China Merchants Jiyu's repurchase total amount is 78 million yuan - 156 million yuan.
China External Transportation, Liaoning Port Shares, and China Merchants South Oil, three listed companies, simultaneously announced the major shareholder's share increase plan. The relevant announcements show that China External Transportation's increase amount is 250 million yuan - 500 million yuan, with an increase price limit of 7.43 yuan per share; Liaoning Port Shares' increase amount is 250 million yuan - 500 million yuan, with an increase price limit of 2.06 yuan per share; China Merchants South Oil's increase ratio is not less than 1% of the total share capital and not more than 1.72% of the total share capital, with an increase price limit of 4.67 yuan per share.
The cumulative upper limit amount of repurchase and increase for the above eight listed companies is close to 5 billion yuan.The official website of China Merchants Group shows that the repurchase or increase plan of the eight listed companies of China Merchants Group complies with the policy guidance of the "9·24" financial policy "combination punch", demonstrating the company's confidence in its own value, which is conducive to promoting the high-quality development of the company.
On October 15, China Energy Construction (601868.SH) issued an announcement stating that the company received a notice from its controlling shareholder, China Energy Construction Group Co., Ltd. (hereinafter referred to as "China Energy Construction Group"), on October 14. China Energy Construction Group plans to increase its A-share holdings in the company through the Shanghai Stock Exchange system using a centralized bidding transaction method within six months from the date of disclosure of the announcement. The total amount of the increase will not be less than RMB 300 million and not more than RMB 500 million.
On October 16, China Construction (601668.SH) issued an announcement stating that the company received a notice from its controlling shareholder, China Construction Group Co., Ltd. (hereinafter referred to as "China Construction Group"), on October 15. China Construction Group plans to increase its A-share holdings in the company through the Shanghai Stock Exchange system using a centralized bidding transaction method within 12 months from the date of disclosure of this announcement. The total amount of the increase will not be less than RMB 600 million and not more than RMB 1.2 billion.
China Construction's stock price closed at 6.46 yuan on October 16, up 3.69%. Since the "9·24" market situation, the stock price of China Construction has risen by nearly 30%.
Chengdu-Chongqing Plate Rises Sharply
On October 16, another hot spot in the A-share market was the sharp rise of the Chengdu-Chongqing plate.
Especially the Sichuan plate, which can be described as a collective surge. Among them, the daily limit of Yunda Technology (300440.SZ), Junyi Digital (301172.SZ), Dahongli (300865.SZ), Zhongke Information (300678.SZ), Ankon Technology (300370.SZ), Shudao Equipment (300540.SZ), Dawe Shares (300535.SZ), and Zhongjian Huanneng (300425.SZ) reached 20%. More than 20 companies, including Sichuan Road and Bridge, Chengdu Road and Bridge, Sichuan Changhong (600839.SH), Sichuan Gold (001337.SZ), Leshan Electric Power (600644.SH), and Xichang Electric Power (600505.SH), had a daily limit of 10%.
The trigger for the rise is the topic of "large-scale demolition in Chengdu". At 4 p.m. on October 16, after the A-share market closed, this topic ranked first on the Weibo hot search list.
On the evening of October 15, many netizens from Chengdu, Sichuan, shared their recent demolition compensation situations on social media. Some claimed to have received more than 9 million yuan for their home demolition. Some claimed to have received 17 houses, as well as three years of rent.
On October 12, the Chengdu Municipal Government News Office held a press conference on the "Chengdu Territorial Spatial Master Plan (2021-2035)", which was also hotly discussed in the market.Also drawing attention is the official public account of the Sichuan Provincial Government, "Sichuan Release," which posted on April 24, 2024: Sichuan officially issued the "2024 Sichuan Province Accelerated Preparatory Work Key Project List," selectively including 330 major projects planned to start within the next 2 to 3 years, with an estimated total investment of 2.15 trillion yuan. Looking at the industry sectors, there are 130 infrastructure projects with an estimated total investment of 1312.78 billion yuan, mainly involving transportation, energy, water conservancy, and other fields, including major projects such as Neijiang Airport, Guangba Railway Capacity Expansion Project, Chuanzhu Temple to Hongyuan Expressway, Panxi Ultra-High Voltage AC Project, Tuojiang Unity Water Conservancy Hub Project, etc. There are 167 industrial projects with an estimated total investment of 781.12 billion yuan, including major projects such as Mianyang Tianhui Aerospace Science and Technology Park, Tongwei Shares Battery Slices, Yajiang County Mulong Lithium Mine Mining and Tailings Project, etc. There are 26 livelihood projects and social undertakings with an estimated total investment of 51.97 billion yuan, including major projects such as Sichuan University Huaxi Stomatology Hospital National Stomatology Medical Center, Sichuan Rural Revitalization Industry-Education Integration Demonstration Base, Piluo Site Park Protection, etc. There are 7 ecological construction and environmental protection projects with an estimated total investment of 7.28 billion yuan, including major projects such as Chishui River Basin (Gulin Section) Comprehensive Management, Shehong Urban Domestic Sewage Treatment and Supporting Infrastructure, etc.
On October 16, the two topics of "Chengdu Demolition" and "Sichuan 2 Trillion Investment" led to a major outbreak in the Sichuan-Chongqing plate. The so-called "speculating on the map" market in the last bull market seems to reappear in the "9·24" market.
In response to the above demolition rumors, the staff of the Chengdu Housing and Urban-Rural Construction Bureau have refuted through the media: The matter of Chengdu demolition is a rumor, the compensation standards for land expropriation and demolition will be announced on the official website, there are relevant policy documents, and it is impossible for a person or a household to compensate tens of millions of yuan.
Jiang Weijia from the Chongqing business department of Jin Yuan Securities said: "The '9·24' market has evolved to this point, and the market has formed a differentiated market. Investors are advised not to blindly believe in news, chase hot spots, and cause losses."