The first share of full circulation will set a benchmark again, and the major shareholder of Sany will continue to lock up the chips for two years

*5656 Financial Daily, June 18On the opening day of the era of full circulation in Shanghai and Shenzhen, that is, yesterday, why was Sany Heavy Industry, the first real fully tradable stock in the "leading role", "absent" by way of suspension? Sany Group, the controlling shareholder of Sany Heavy Industry announced today, promised to uncover the mystery: Sany Group voluntarily locked up the shares that had obtained the right to circulate for another two years.

Sany Heavy Industry, which has created many precedents for share reform, has set a "benchmark" worthy of emulation for the "big non" shareholding behavior of listed companies after full circulation after entering the era of full circulation.

to maintain stock price stability with re-locking

According to the announcement, Sany Group promised to voluntarily continue to lock up the 518126188 shares of Sany Heavy Industry held by Sany Group yesterday from tomorrow for 2 years from tomorrow; Within two years since yesterday, if the secondary market price of Sany Heavy Industry shares is lower than twice the closing price on June 16 (i.e., 55.76 yuan), Sany Group promises not to reduce its holdings of Sany Heavy Industry shares through the secondary market.

In addition to the relevant content in the announcement, Zhao Xiangzhang, vice president and secretary of the board of directors of Sany Heavy Industry, said to the media yesterday afternoon that Sany Group also promised that in the next two years, if the secondary market price of Sany Heavy Industry shares is too low, it will increase its holdings in the secondary market after applying for the exemption of the tender offer to maintain the stability of the stock price.

As for what price will trigger Sany Group to increase its holdings, Sany Heavy Industry and Sany Group have not clearly agreed. Zhao Xiangzhang said that Sany Group's commitment to increase its holdings is mainly to stabilize the share price of Sany Heavy Industry, and the increase in holdings involves many aspects, and the price of the increase will be determined through "overall judgment".

Regarding the worries of shareholders that major shareholders will reduce their holdings of Sany Heavy Industry after full circulation, Liang Wengen, chairman of Sany Heavy Industry, once said: "Sany has no reason to reduce its holdings. ”

Xiang Wenbo, president of Sany Heavy Industry, said that the reason why the price below 55.76 yuan was determined not to be reduced does not mean that Sany Heavy Industry will have major projects in operation in the near future. This price is only the judgment made by Sany Group based on its performance, indicating that it is full of confidence in the prospects of Sany Heavy Industry.

Or become a "big non" benchmark after full circulation

On June 10, 2005, Sany Heavy Industry's share reform plan was approved and became "share reform * 5656 shares". The "Sany model" of sending shares and sending cash was widely adopted, and Sany Heavy Industry became the "vane of share reform". Analysts believe that Sany Group's commitment to voluntary lock-in immediately after the full circulation of Sany Heavy Industry will set an example for the "big non" shareholding behavior of other listed companies after full circulation.

"We hope that this approach can become a model for the arrival of the era of full circulation and play a certain role in influence." Xiang Wenbo confessed.

Sany Heavy Industry Co., Ltd. is the first fully tradable listed company in Shanghai and Shenzhen with restricted shares under the share reform. According to the agreement of the share reform, on June 19, 2006, one year after the share reform, some of the restricted shares of Sany Heavy Industry were allowed to be listed and circulated, which was the first to open the circulation of restricted shares in the two cities. With the circulating of restricted shares of other listed companies, the lifting of the ban on restricted shares and the reduction of holdings have attracted great attention, especially in the recent stock market crash, investors have been panicking about the reduction of "large and small" holdings.

Xiang Wenbo believes that there is no need to panic, and there has not yet been a major shareholder sell-off that could create panic in the market. However, it is useless to explain alone, and major shareholders must prove it with actions to reassure the market. "(Sany Group) hopes to set an example and advocate everyone to pay attention to China's capital market and maintain the stability and healthy development of the capital market through such behavior (the controlling shareholder's commitment to lock-in)." Xiang Wenbo said.

According to the analysis report of Deyuan Investment, many people point the finger at the decline of the stock market at the "big and small" reduction, but the relevant data shows that the "big and small" can hardly be said to be the "main culprit". Taking Sany Heavy Industry as an example, since some of its restricted shares were first lifted on June 19, 2006, the number of shares reduced by "large and small" accounted for less than 3% of the total shares. The arithmetic average of the proportion of the total number of shares reduced in Shanghai is only 0.44%, and the average monthly proportion of total shares reduced in Shenzhen as of April is 0.538%.

Analysts believe that in the context of the market's great concern about the reduction of "large and small non-s" holdings, Sany Group's commitment to set a benchmark for the "big and small" reduction of holdings is undoubtedly good. (Liu Lang)