Yi Huiman, chairman of the CSRC, recently drew up a high-quality development blueprint for listed companies, making it clear that the capital market will provide inexhaustible driving force for listed companies to overcome difficulties and move forward bravely with its own “four invariants”. He also said that efforts will be made to improve the “five abilities” of listed companies, including grasping the foundation, strengthening the main business, cultivating the growth board, toughening and focusing on benefits.
Liu Chenming, chief analyst of Tianfeng Securities Co.Ltd(601162) strategy, said that Yi Huiman’s speech provides a path and direction for the high-quality development of listed companies. Cultivating growth board, improving innovation ability, toughness and anti risk ability are important requirements for improving the sustainability and stability of listed companies’ performance; Grasping the foundation and consolidating the governance ability is the premise of enhancing the internal compliance and compliance quality of the company; Focusing on efficiency and improving the ability of return is to emphasize the social quality of the company, that is, to enhance the responsibility of returning to the society while achieving performance. Listed companies should strengthen five kinds of capacity-building and strengthen the ability of social return, internal compliance and sustained and stable performance.
“four invariants”
provide power for market stability
“No matter now or in the future, the capital market will provide inexhaustible power for listed companies to overcome difficulties and move forward bravely with its own ‘four invariants’.” Yi Huiman said that the direction of deepening reform in the capital market will not change, the pace of high-level opening-up of the capital market will not change, the firm attitude of the capital market to implement the “two unwavering” policy will not change, and the trend of healthy and stable development of the capital market will not change.
“This is a reassurance for the stable and healthy development of the market.” Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that affected by the internal and external environment, the development of listed companies is facing increasing hard constraints such as cost, resources and environment, and more and more challenges for the stable and healthy development of the capital market. To stabilize market expectations, we must clarify the direction and principles of supervision, and the “four invariants” clarify the direction of reform of the capital market.
Specifically, the capital market will promote the full implementation of the reform of the stock issuance and registration system, smoothly implement the reform of the registration system, take the reform of the registration system as the traction, comprehensively promote the implementation of key reform tasks such as the construction of the basic system of the capital market, the improvement of the rule of law system, regulatory transformation and capacity improvement, pay close attention to research and launch a new round of independent opening-up and practical measures, and promote the results of China US audit and supervision cooperation, Build a predictable international regulatory environment for the high-level opening of the capital market. While continuing to vigorously support the reform of state-owned assets and state-owned enterprises, become stronger and better, and become a big country with capital, we will unswervingly support the innovation, transformation and healthy development of private enterprises. All relevant departments should make concerted efforts to continuously pay attention to and solve everyone’s concerns, strengthen expectation management, and jointly create a good development environment for the capital market.
Yi Huiman’s “four invariants” come down in one continuous line with the continuous statements of the regulatory authorities since March. Since March, the financial commission and the NPC and CPPCC have actively spoken, playing an important role in stabilizing the market, reflecting the regulators’ attention to market sentiment and releasing a positive signal that they will maintain a loose policy position.
Liu Chenming pointed out that the statement of the regulatory authorities has revived market confidence, “maintained the stable operation of the capital market”, and required “actively introduce policies beneficial to the market and carefully introduce contractive policies”; With regard to China concept shares, the regulatory authorities said that at present, positive progress has been made in the communication between regulators of China and the United States, and they are working to form a specific cooperation plan; For Hong Kong stocks, the supervision emphasizes “the mainland and Hong Kong regulators should strengthen communication and cooperation” and “promote the stable and healthy development of the platform economy”. This series of statements not only strengthen the determination of the continuous reform of the capital market, but also make all market participants understand that in the current environment, only by seizing the favorable conditions and overcoming the adverse effects can we continuously promote the high-quality development of the market and listed companies.
“five abilities”
put forward new requirements for listed companies
“Listing is not only for financing, but also to improve governance, enhance competitiveness and better repay shareholders and society.” Yi Huiman stressed that listing is not the “end point”, but the “starting point” to achieve higher quality development. Efforts should be made to improve the “five abilities”, including grasping the foundation, strengthening the main business, cultivating the growth board, toughening and focusing on benefits.
Chang Zhangli, President of CNBM, China Jushi Co.Ltd(600176) and chairman of Xinjiang Tianshan Cement Co.Ltd(000877) said that these five abilities are very targeted. They are not only the development requirements of listed companies themselves, but also the solution to the existing problems of listed companies. The proposal of the five abilities is consistent with the reform goal of the state to enhance the competitiveness, innovation, control, influence and anti risk ability of the state-owned economy, The goal is high-quality development.
“These five abilities are inseparable from the high-quality development of listed companies.” Liu Chenming said that cultivating the growth board, improving innovation ability, toughness and anti risk ability are important requirements for improving the sustainability and stability of the performance of listed companies; Grasping the foundation and consolidating the governance ability is the premise of enhancing the internal compliance and compliance quality of the company; Focusing on efficiency and improving the ability of return is to emphasize the social quality of the company, that is, to enhance the responsibility of returning to the society while achieving performance.
Specifically, Yi Huiman said that he would continue to improve the capital market system and rules, guide listed companies to focus on their main business and develop steadily. Listed companies should constantly strengthen the dominant position of innovation, make good use of various tools of the capital market to support innovation, adhere to positive innovation, practically enhance the “content” of science and technology, strive to improve their internal skills, and combine the entrepreneurial spirit of innovation and innovation with the construction of risk prevention mechanism, To continuously enhance the resilience of the company, we should continue to enhance the return to shareholders through cash dividends and share repurchases, so as to enhance the sense of gain of investors.
Chang Zhangli pointed out that as a listed company controlled by a central enterprise, China building materials will work hard to improve governance according to five ability requirements, actively build an effective governance mechanism, handle the relationship between shareholders, the board of directors, management and stakeholders, and actively give full play to the role of non-public shareholders in listed companies in combination with the three-year reform action plan of state-owned enterprises; Make efforts to highlight the main business, make efforts in innovation and transformation, steadily promote the extension of the industrial chain, continuously improve competitiveness and create an invisible champion in the industry. Make efforts to improve the return of shareholders, and hope that shareholders can share the results of the company’s operation and development and grow together with the company; Make efforts in risk prevention and control, strengthen compliance management, and improve the ability of risk identification and risk prevention and control.
At present, the CSRC is studying and formulating a new round of action plan to improve the quality of listed companies, further solve the internal obstacles and external constraints faced by the high-quality development of listed companies, accelerate the regulatory transformation, and constantly enhance the adaptability, effectiveness, guidance and synergy of regulation.
Liu Chenming pointed out that this will solve the situation that some managers of listed companies have weak compliance awareness and the quality of information disclosure of some listed companies is not high. All parties in the market should also actively participate in it. The “key minority” of listed companies should lead the development direction of enterprises, and intermediary institutions should continue to urge and improve the standardized operation level of companies under the background of the comprehensive promotion of the registration system, Investors should also play a greater role in corporate governance, form joint forces and jointly promote the high-quality development of listed companies.
