Focus on the motivation, effect and compliance analysis of listed companies' bottom-up holdings

Abstract

In order to maintain the stability of the market and control the risks in the securities market, the state encourages listed companies to support their stock prices by means of overweight, equity incentive and repurchase, and the blanket overweight method came into being. As far as enterprise organizations are concerned, the motivation of listed companies to increase their holdings is to maintain the stock price, relieve the pressure of large shareholders' equity pledge and close their positions as well as assist shareholders to obtain benefits. In the short term, blanket overweight generally does not lead to the positive effect of stock price, but also determines whether employees and major shareholders can become consistent actors, judges whether it will trigger tender offer, and analyzes how to protect the legitimate rights and interests of investors. This paper will take Company A as an example, and simply analyze the motivation, effect and compliance of listed companies.