On April 11, the CSRC, the SASAC and the all China Federation of industry and Commerce issued the notice on further supporting the healthy development of listed companies (hereinafter referred to as the notice) to stabilize enterprise confidence, investor confidence and policy expectations.
look at the key statement:
\u3000\u30001. Treat all kinds of market subjects equally, do not set any additional conditions and invisible thresholds, and create a market environment for fair competition. We will support private enterprises in listing and financing, mergers and acquisitions, and improve the bond financing support mechanism for private enterprises.
\u3000\u30002. Adhere to the principle of “housing without speculation”, support listed real estate enterprises to actively transform to a new development model according to law and regulations, strengthen their own risk management, pay close attention to the market situation and industry changes, strictly prevent and properly resolve all kinds of risks, and promote the virtuous circle and healthy development of the real estate industry.
\u3000\u30003. The initial listing fee, annual fee and online voting service fee of Listed Companies in 2022 will be exempted to reduce the burden of enterprises
\u3000\u30004. Improve the system and mechanism conducive to the participation of long-term institutional investors in the capital market, encourage and support social security, pension, trust, insurance and financial institutions to allocate more funds to equity assets, and increase capital market investment, especially the stock investment of high-quality listed companies.
\u3000\u30005. Support eligible listed companies to repurchase in order to stabilize the share price. Support listed companies to raise funds and implement share repurchase through issuing preferred shares, bonds and other channels according to law.
\u3000\u30006. Support listed companies to increase the proportion of cash dividends in profit distribution, share development Dividends with investors and enhance the sense of gain of investors.
\u3000\u30007. Major shareholders of listed companies should prudently increase stock pledge, and financial institutions should steadily grasp the new stock pledge business.
\u3000\u30008. The CSRC and its dispatched offices adhere to both supervision and service to improve the quality of service supply to listed companies.
\u3000\u30009. SASAC gives active guidance and support to share repurchases and cash dividends of state-controlled listed companies, and guides state-controlled listed companies to become an example of promoting the stable development of the capital market. The state-owned shareholders of listed companies actively increase their holdings of shares of listed companies with undervalued value, and support listed companies to implement share repurchase and cash dividends.
\u3000\u Doushen(Beijing) Education&Technology Inc(300010) . The federations of industry and commerce at all levels strengthen the research and training of private listed companies, guide private listed companies to adhere to legal and compliant operation, and promote the high-quality development of private listed companies.
encourage institutions to increase capital market investment
the notice is divided into three parts and 12 items
First, create a good development environment and stabilize enterprise expectations.
Adhere to the “two unwavering”, treat all kinds of market subjects equally, do not set any additional conditions and invisible thresholds, and create a market environment for fair competition. We will support private enterprises in listing and financing, mergers and acquisitions, improve the bond financing support mechanism for private enterprises, stimulate the vitality and creativity of private enterprises, and give full play to the important role of private listed companies in stabilizing growth, promoting innovation, increasing employment and improving people’s livelihood.
Adhere to the principle of “housing without speculation”, support listed real estate enterprises to actively transform to a new development model according to law and regulations, strengthen their own risk management, pay close attention to the market situation and industry changes, strictly prevent and properly resolve all kinds of risks, and promote the virtuous circle and healthy development of the real estate industry.
We will implement supportive policy arrangements for enterprises in areas seriously affected by the epidemic and enterprises in the field of epidemic prevention and control through capital market financing, mergers and acquisitions. The initial listing fee, annual fee and online voting service fee of Listed Companies in 2022 will be exempted to reduce the burden of enterprises.
Improve the system and mechanism conducive to the participation of long-term institutional investors in the capital market, encourage and support social security, pension, trust, insurance and financial institutions to allocate more funds to equity assets, and increase capital market investment, especially the stock investment of high-quality listed companies.
Second, promote the return of value and stabilize investors’ expectations.
Encourage listed companies to repurchase shares for equity incentive and employee stock ownership plans. Support eligible listed companies to repurchase in order to stabilize the share price. Support listed companies to raise funds and implement share repurchase through issuing preferred shares, bonds and other channels according to law.
Encourage major shareholders and directors, supervisors and senior executives to hold shares of listed companies for a long time, and actively stabilize the stock price by increasing their shares when the company’s shares fall sharply. Carefully formulate the reduction plan, strictly abide by the disclosure, quantity, price and time requirements on the reduction, and reduce the holdings in a standardized and orderly manner.
Support listed companies to increase the proportion of cash dividends in profit distribution in combination with the industry characteristics, development stage and profitability of the company, share development Dividends with investors, and enhance the sense of gain of investors.
Encourage listed companies to actively hold annual report performance explanation meetings, make full use of digital means, innovate communication methods, visually display the company’s operation and performance, improve the interactive effect, and enhance investors’ recognition of enterprise value and business philosophy. We should guide listed companies to actively manage investor relations, and actively voice their opinions through media interviews, website press releases, official account numbers, etc., and respond positively to market hotspots and investor concerns, and boost investor confidence.
Major shareholders of listed companies should prudently increase stock pledge, and financial institutions should steadily grasp the new stock pledge business. For stock pledge financing that touches the closing line or defaults, financial institutions should be urged to actively communicate and negotiate with shareholders of listed companies, and safely dispose of the risk of forced closing of stocks by supplementing pledges, collateral and other credit enhancement measures and extension.
Third, all departments actively perform their duties and jointly promote market stability.
The CSRC and its dispatched offices adhere to both supervision and service, closely track the situation of listed companies, strengthen communication and coordination with local governments and relevant parties, timely understand the impact of the epidemic on the operation and market operation of listed companies, and improve the quality of service supply to listed companies while doing a good job of supervision according to law and compliance. The stock exchange has established an open, transparent and standardized service mechanism for listed companies to continuously improve the efficiency of regulatory services. The China Association of listed companies performs its duties of self-discipline and standardization and actively guides listed companies to stabilize expectations.
In accordance with the principle of facilitating enterprises, SASAC actively guides and supports the share repurchase and cash dividend of state-controlled listed companies, and guides state-controlled listed companies to become an example of promoting the stable development of the capital market. The state-owned shareholders of listed companies should be active and responsible shareholders, actively increase their holdings of shares of listed companies with undervalued value, and support listed companies to implement share repurchase and cash dividends.
The federations of industry and commerce at all levels give full play to the role of guiding and serving private listed companies, strengthen the research and training of private listed companies, guide private listed companies to adhere to legal and compliant operation, widely listen to opinions and suggestions, timely reflect the demands of enterprises, strengthen communication and cooperation with relevant departments, jointly promote the optimization of policy environment and promote the high-quality development of private listed companies.
listed companies’ high-quality development boosts the stability of the capital market
In the current complex situation, the operation and development of listed companies are also facing new tests. Under the impact of the epidemic in the 21st century, the evolution of the situation in the past century has accelerated, economic globalization has encountered a countercurrent, the vulnerability of the global industrial chain and supply chain has increased, the world economic recovery has slowed down, inflation is high, and unstable and uncertain factors have increased significantly.
China’s economic development is facing triple pressures of shrinking demand, supply shock and weakening expectation. The development of listed companies is facing increasing hard constraints such as cost, resources and environment. The foundation for continuous profit restoration is still not solid, and it is increasingly difficult to find the optimal solution under multiple constraints.
as of the end of March, there were 4782 domestic listed companies with a total market value of 80.7 trillion yuan, ranking the second in the world; The number and market value of listed companies increased by 33.4% and 85.3% respectively compared with the end of 2018. At present, the number of private listed companies has exceeded 3000, accounting for about 2 / 3. In recent years, private enterprises have accounted for more than 80% of the newly listed companies
“Many favorable factors to promote the high-quality development of listed companies.” Yi Huiman, chairman of the CSRC, said at the third member congress of the association of listed companies that first, the macro policy synergy of steady growth and stable expectation is increasing. Second, the market ecology of survival of the fittest is accelerating. Third, the attractiveness of the capital market to investors is increasing.
Among them, the notice is the embodiment of the macro policy synergy of stabilizing growth and expectations. At present, China has the most complete and largest industrial system and super large domestic demand market in the world. The long-term stable and positive Chinese economy is the source of high-quality development of listed companies. Since the beginning of this year, various localities and departments have launched policies to ensure supply and stabilize prices and revitalize the operation of the industrial economy. Market liquidity has remained reasonably abundant, tax and fee cuts and dividends have been continuously released, and enterprises will receive more policy support to reduce costs, increase efficiency and accelerate development. Recently, relevant meetings have also made arrangements for effectively resolving real estate market risks and promoting the standardized development of platform economy, which further improved market expectations. The CSRC also issued relevant measures on reducing the initial and annual fees of listed companies and optimizing regulatory services to help listed companies overcome the impact of the epidemic and firmly support the development of the real economy.
Yi Huiman pointed out the path of high-quality development of listed companies, that is, strive to improve the “five abilities”, including grasping the foundation and consolidating the governance ability; Strengthen the main business and enhance the competitiveness; Cultivate the long board and improve the innovation ability; Toughening and improving risk resistance; Focus on efficiency and improve the ability of return.
Liu Chenming, chief analyst of Tianfeng Securities Co.Ltd(601162) strategy, 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. Listed companies should strengthen five kinds of capacity-building and strengthen the ability of social return, internal compliance and sustained and stable performance
Overweight pounds! Encourage social security and pensions to allocate more funds to equity assets! The CSRC and other three departments issued documents to support the capital market
Heavy! The CSRC and other three departments work to stabilize market confidence: encourage institutions to enhance capital market investment and support the transformation of listed real estate enterprises
To support the development of listed enterprises, the “12 articles” were issued, encourage long-term funds to enter the market, and support the transformation of real estate enterprises. The CSRC, SASAC and other three ministries and commissions took joint action
