Among the 132 new stocks in the A-share market in the first ten months of this year, more than 20 had IPO over-subscription. As one of the "market stabilization policy packages," the China Securities Regulatory Commission (CSRC) announced on Monday (November 2) that it plans to adjust and optimize share buybacks necessary for maintaining company value and shareholder rights — namely "market-support buybacks" — to further improve the convenience of buybacks and leverage the market's intrinsic stabilizing function.
The CSRC's official website disclosed four optimization measures that evening, including adding stock price "breaking below issue price" as one of the circumstances under which market-support buybacks can be conducted, and requiring listed companies with over-subscribed funds to promptly implement buybacks when market-support buyback conditions are triggered. The CSRC also stated that it will strengthen coordination with relevant parties in the near term, supporting, encouraging, and urging qualified listed companies — especially important index constituent stocks and leading technology stocks — to actively implement share buybacks based on their own circumstances and continuously improve market value management.
With regulatory efforts in full swing, stocks trading below their issue price, over-subscribed stocks, and stocks that have already disclosed buyback plans but have not yet completed implementation are all expected to accelerate their buyback pace. A reporter from Yicai, based on data from Tonghuashun and Wind, found that in terms of over-subscription, among the 132 new stocks in the A-share market in the first ten months of this year, more than 20 had IPO over-subscription. In terms of breaking below issue price, among those 132 new stocks, as of the close on November 2, nearly 20 had fallen below their issue price, with some seeing cumulative declines exceeding 20% since listing.
Slow buyback progress and buyback amounts falling short of committed lower limits have also drawn attention from investors and regulators. For example, some investors asked on an interactive platform: "The company's stock price has plummeted, so why has it only symbolically bought back just over 200,000 shares?"
Over 20 New Stocks This Year Have IPO Over-Subscription
Based on the original planned fundraising amount versus the actual net fundraising amount, the reporter's preliminary review of Tonghuashun data found that in the first ten months of this year, there were 132 new stocks in the A-share market, of which more than 20 had IPO over-subscription, mostly from the STAR Market and ChiNext boards. Overall, the vast majority of these over-subscribed stocks only slightly exceeded their targets, with IPO over-subscription amounts below 200 million yuan.
The largest over-subscription amounts belonged to Cxmt Corporation (688825.SH) and Yushu Technology Co.,Ltd. (688836.SH), with the former's over-subscription exceeding 30 billion yuan. Cxmt Corporation listed on the STAR Market on July 27, originally planning to raise 29.5 billion yuan, but actually raised a total of 57.919 billion yuan, which expanded to 66.607 billion yuan after fully exercising the over-allotment option, with an actual net fundraising amount of 66.310 billion yuan. Calculated on a net basis, the over-subscription was approximately 36.8 billion yuan.
Ranking second in over-subscription amount was Yushu Technology Co.,Ltd., with over-subscription exceeding 1 billion yuan. The company listed on the STAR Market on August 19, originally planning to raise 4.202 billion yuan, but ultimately raised a total of 6.099 billion yuan and a net amount of 5.917 billion yuan, an over-subscription of approximately 1.7 billion yuan.
Other new stocks with IPO over-subscription included Chengdu Ultra Pure Applied Materials Co.,Ltd. (301717.SZ), Chongqing Genori Technology Co., Ltd. (688797.SH), Shanghai Precilasers Technology Co.,Ltd. (688826.SH), and Shenzhen Jlc Technology Group Co., Ltd. (001232.SZ). These companies all had fundraising scales below 5 billion yuan, with several raising less than 1 billion yuan and over-subscription amounts below 500 million yuan.
Among them, the largest in fundraising scale was Shenzhen Jlc Technology Group Co., Ltd., which listed on the Shenzhen Main Board in early August, originally planning to raise 4.2 billion yuan, but ultimately raised a total of 4.693 billion yuan and a net amount of 4.448 billion yuan, an over-subscription of nearly 250 million yuan. Those with over-subscriptions of approximately 400 million yuan were Chongqing Genori Technology Co., Ltd. and Chengdu Ultra Pure Applied Materials Co.,Ltd., which listed on the STAR Market and ChiNext in June and August respectively. Chongqing Genori Technology Co., Ltd. originally planned to raise 1.198 billion yuan, but its final IPO net fundraising was 1.605 billion yuan, an over-subscription of 407 million yuan; Chengdu Ultra Pure Applied Materials Co.,Ltd. originally planned to raise 1.125 billion yuan, with an IPO net fundraising of 1.557 billion yuan, an over-subscription of 433 million yuan.
In addition, many of the aforementioned over-subscribed new stocks only slightly exceeded their targets, with over-subscription amounts below 100 million yuan, involving Chengdu Hongming Electronics Co.,Ltd. (301682.SZ), Ningbo Hicon Industry Technology Co.,Ltd. (001237.SZ), and others.
Nearly 20 New Stocks This Year Have Fallen Below Issue Price
Among the new stocks listed this year, which ones have already broken below their issue price? According to Wind statistics, among the 132 new stocks in the first ten months, as of the close on November 2, comparing the latest closing price with the IPO price, 19 stocks had already broken below their issue price. Among the 19, stocks from the Beijing Stock Exchange accounted for nearly 60% (11 stocks), with 7 from the main boards and the remaining 1 from the STAR Market.
In terms of the magnitude of the decline below issue price, 4 stocks had cumulative declines exceeding 20% since listing, including Temb Intelligent Technology(Shandong) Co.,Ltd. (603448.SH), Ningbo Hicon Industry Technology Co.,Ltd. (001237.SZ), Qiaoluming (920079.BJ), and Tongling Technology (920187.BJ). Among them, Tongling Technology listed on the Beijing Stock Exchange in early March at an IPO price of 29.62 yuan, closing at 15.32 yuan on November 2, with a cumulative decline of 23.86% since listing. Another Beijing Stock Exchange stock, Qiaoluming, listed in late July at an IPO price of 14.36 yuan, with its latest stock price (November 2) at 11.37 yuan, also seeing a cumulative decline exceeding 20% since listing.
Among the STAR Market new stocks listed this year, only one has currently broken below its issue price, namely Isvision(Hangzhou)Technology Co.,Ltd. (688816.SH). The company closed at 47.53 yuan on November 2, having listed on the STAR Market in February at an IPO price of 55.95 yuan, with a cumulative decline of nearly 15% since listing.
The 7 main board new stocks currently below their issue price include 4 from the Shanghai Main Board — Wuhu Atech Automotive Co.,Ltd. (603293.SH), Anhui Linping Circular Development Co.,Ltd. (603284.SH), Temb Intelligent Technology(Shandong) Co.,Ltd. (603448.SH), and Shaanxi Tourism Culture Industry Holding Co.,Ltd. (603402.SH) — and 3 from the Shenzhen Main Board — Shimeng Supply Chain Management Co.,Ltd. (001220.SZ), Hangzhou Fuen Co.,Ltd. (001312.SZ), and Ningbo Hicon Industry Technology Co.,Ltd. (001237.SZ).
Slow Buyback Progress Draws Investor Scrutiny
Against the backdrop of continuously rising buyback and share increase activity, some companies that disclosed buyback plans this year have seen relatively slow implementation progress, drawing scrutiny from investors on interactive platforms.
Youngy Co.,Ltd. (002192.SZ) disclosed a share buyback plan in late July, planning to buy back 50 million to 100 million yuan worth of shares, corresponding to approximately 684,900 to 1,369,900 shares, at a buyback price not exceeding 73 yuan per share. At the time, the company stated that the buyback period would not exceed three months from the date the shareholders' meeting approved the buyback plan, and the repurchased shares would be used for maintaining company value and shareholder rights. In early August, the share buyback plan was approved by the company's shareholders' meeting.
Subsequently, Youngy Co.,Ltd. disclosed that it bought back 180,000 shares on August 18, accounting for 0.07% of total share capital, with a transaction amount of 12.6831 million yuan. In early October, the company further disclosed that as of the end of September, it had cumulatively bought back 230,000 shares, accounting for 0.09% of total share capital, with a transaction amount of 16.0304 million yuan.
On the interactive platform, investors repeatedly asked about Youngy Co.,Ltd.'s buyback progress. In late September, an investor said the company's stock price had been falling continuously and asked what plans the company had and whether it would continue buying back shares to boost shareholder confidence. Youngy Co.,Ltd. responded that secondary market stock prices are affected by a combination of factors including the macroeconomic situation, industry trends, capital preferences, and market sentiment, and are subject to certain volatility. The company's share buyback matter is being implemented, and the company will continue to implement buybacks within the buyback period based on market conditions.
Recently, an investor asked on October 30: "Since the company announced its buyback plan in July, the stock has plummeted, but the buyback has only been a symbolic 230,000 shares and has been delayed in implementation. Is it because the company has funding problems, or because the company possesses information that the stock price will continue to decline?" In response, Youngy Co.,Ltd. stated that the company's share buyback matter is being implemented, and the company will continue to implement buybacks within the buyback period based on market conditions.
Some other A-share companies have also been penalized because their buyback amounts fell short of committed lower limits. In late May, Guanghui Logistics announced that it had received an administrative regulatory measure decision issued by the Sichuan Securities Regulatory Bureau. According to the disclosure, in July 2024, Guanghui Logistics planned to buy back shares through centralized bidding within 12 months, with a total fund amount of 200 million to 400 million yuan, and later extended the buyback period to April 30, 2026. However, as of the end of April this year, the company's total buyback fund amount was only approximately 100 million yuan, falling short of the lower limit of the total buyback fund amount in the plan. The Sichuan Securities Regulatory Bureau decided to take corrective measures against Guanghui Logistics.
Zhejiang Jingxing Paper Joint Stock Co.,Ltd. (002067.SZ) was also penalized for this reason. The company disclosed at the end of 2024 that it planned to buy back 80 million to 150 million yuan, later extended to February 19, 2026, but ultimately only actually bought back 4.5741 million yuan, accounting for 5.72% of the lower limit. The Zhejiang Securities Regulatory Bureau issued a warning letter to the company.
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