Yangzijiang Financial Holding

[Squirrel]

It has been weeks since the AGM approved the renewal of SSB. However, no SSB has been activated.

Its indeed true that the company is cash rich and I thought with YZJ Finance languishing at very low valuations (at 0.3 times P/B) , some SSB will enhance shareholder value. However, this is not the case. I wonder where is their cash being locked at as they have not made any new cash injections into funds as well

I have a very simplistic explanation for this. The company was waiting for the dividend ex date before resuming SBB.

Treasury shares are not paid dividends. I would believe that the dividend number has been fixed and set aside to pay out to non treasury shares. Doing any SBB in between AGM to dividend ex date would result in this number changing every time a buyback is done. Administratively, there is just no need to complicate matters. The company has stated as well that they are not in a hurry to spend their cash on buybacks as these can form anchoring contributions to funds that they launch.

That’s just my simplistic way of looking at it. Maybe the 3m shares buyback today help supports it.