Analysis Of Stock Repurchase Of Baosteel

Stock repurchase refers to the listed company from the stock market to buy back a certain amount of the company issued the behavior of foreign shares.It is an important dividend policy,but also the company to improve the governance structure,optimize the capital structure of an effective way.Is a very common corporate financial management in the securities market,not only will affect the various participants in the market,and the company's own financial situation has far-reaching impact.This paper analyzes the successful experience of Baosteel's share repurchase and the main concerns of Baosteel's stock repurchase and analyzes the reasons behind the successful repurchase,including the timing,process control and the issues that should be paid attention to after repurchase.Stock repurchase of this financial means for the need to repurchase the listed companies to provide theoretical support and practical guidance.This paper is divided into five parts,namely,the introduction,the theory of stock repurchase of listed companies,the background of Baosteel's repurchase,the main concerns of Baosteel's repurchase,case experience and policy recommendations.The main part of this article is the main concern of the company's stock repurchase.The main concern of the stock repurchase includes three aspects:timing choice,process control and repatriation protection measures.In China,due to the late start of the capital market and the application of stock repurchase is not very mature,investors and corporate managers on the repurchase of understanding is not enough depth.In the actual repurchase,listed companies will be in accordance with the timing of repurchase and market environment,to develop a different way of repurchase and pricing strategies.In general,the need for stock repurchase companies have the following four:First,when the company's share price is undervalued,the company hopes to repurchase the market to pass the underestimated news,thereby enhancing the stock price;Second,the company exists A large number of idle funds,repurchase part of the stock and write off,by reducing the flow of shares to reduce the company's dividend pressure to improve capital leverage;Third is to increase the proportion of shares to enhance the company's control;The company implemented equity incentive.Finally,through the analysis of Baosteel's successful repurchase experience,this paper draws the following conclusions:The listed companies want to ensure that the repurchase can be implemented smoothly,first of all need to choose at the time of repurchase,help reduce the repurchase costs,Financial risk;secondly,to ensure that the appropriate form of funding and funding sources,through the daily market analysis to develop a reasonable daily repurchase prices and the number to increase earnings per share;repurchase immediately after the cancellation of the repurchase Stock,to promote the company's stock price rise;Finally,to ensure the adequacy of repurchase funds under the premise of the conditions,the establishment of multi-level financing channels to prevent funding strand breaks.At the same time pay attention to the short-term effects of repurchase and financial risk response.