On April 15, the CSRC issued the guidelines on the management of investor relations of listed companies (hereinafter referred to as the guidelines) to further standardize the management of investor relations of listed companies. Clarify the definition, scope of application and principles of investor relations management, increase and enrich the contents and methods of investor relations management, and strengthen the main responsibility of “key minorities” of listed companies. The guidelines will come into force on May 15, 2022.
puts forward new requirements for listed companies to strengthen investor relations management
Strengthening investor relationship management is not only an important measure to improve the quality of listed companies, but also an important content of investor protection. In July 2005, China Securities Regulatory Commission issued the guidelines (2005) as the basic behavior guide for listed companies to carry out investor relations management.
Since its implementation, it has played a positive role in guiding listed companies to carry out investor relationship management, promoting the standardized operation of listed companies and protecting the legitimate rights and interests of investors. In recent years, with the continuous promotion of the comprehensive deepening reform of the capital market and the continuous improvement of the basic system of the securities market, new requirements have been put forward for listed companies to strengthen the management of investor relations; The practice of investor relations management of listed companies has accumulated new practices and experience; The development of the Internet has brought new changes to the way of investor relations management; The two-way opening of the capital market has also brought some new situations.
The release of the guidelines is to sort out and summarize the specific practices of Listed Companies in recent years and revise and improve the guidelines (2005).
three aspects to standardize the management of investor relations of listed companies
the guidelines consists of 32 articles, including general provisions, contents and methods of investor relations management, organization and implementation, supplementary provisions, etc., mainly including:
First, further clarify the definition, scope of application and principles of investor relations management. Define investor relationship management from the dimensions of content, method and purpose. Make it clear that the guidelines are applicable to joint stock limited companies established in accordance with the company law and whose shares are listed and traded on stock exchanges in China. An overseas company that issues shares or depositary receipts within the territory of China and is listed shall implement it by reference. Establish four basic principles: compliance, equality, initiative and honesty and trustworthiness.
The second is to further increase and enrich the contents and methods of investor relations management, and solidify the good practices in practice in recent years. Adapt to the development situation of the new era such as the Internet and new media, and add new channels such as websites, new media platforms and investor education bases on the basis of traditional communication channels of investor relations management such as telephone and fax. Make special provisions on the convening situation and requirements of the investor briefing, improve the quality and effect of the investor briefing, and make it truly a bridge for the company to transmit value and investors to find value. Clarify the main responsibilities of investor relations management of listed companies, and require the company to formulate systems and mechanisms to improve the operability of the guidelines. Implement the requirements of the new development concept and add the environmental, social and Governance (ESG) information of listed companies to the communication content. Clarify the primary responsibility of listed companies for handling appeals. Clarify that listed companies should establish and improve the mechanism for the custody and utilization of investor relations management archives.
Third, further clarify the organization and implementation of investor relations management of listed companies, and strengthen the constraints on listed companies. At the operational level, further clarify the system formulation, department setting, responsible subjects, staffing, training and learning of investor relations management of listed companies. Strengthen the main responsibility of the “key minority” of listed companies. In addition to the Secretary of the board of directors and specialized personnel, it also puts forward requirements for the controlling shareholders, actual controllers, directors, supervisors and senior managers of listed companies to clarify their prohibitions in the management of investor relations. Advocate investors to enhance shareholders’ awareness, exercise and protect their rights according to law, and form a rational and mature investment culture. Clarify that the CSRC and its dispatched offices shall supervise and manage the investor relations management of listed companies according to law. Clarify the self-discipline organizations such as stock exchanges and listed company associations, formulate self-discipline rules and carry out self-discipline management. Clarify the regulatory authorities, self regulatory organizations and investor protection institutions, which can evaluate the status of investor relations management of listed companies, publish good practice cases and experience, and promote listed companies to continuously improve the level of investor relations management.
regulatory authorities attach great importance to investor relations management
The guidelines further clarify the connotation of investor relations management, increase and enrich the contents and methods of investor relations management, strengthen the constraints on listed companies, promote listed companies to improve governance, standardize operation, strive to improve quality, and effectively protect the legitimate rights and interests of investors, especially small and medium-sized investors. This fully shows that regulators attach great importance to investor relations management.
Everbright Securities Company Limited(601788) relevant person in charge said that the key to investor relations management is to take investors as the center and establish a benign interaction between the capital market and the company, so as to make it a link between the company’s operation and the capital market. Investor relations management should fully reflect its important role in market expectation management, market transmission management and capital strategy management, serve the promotion of the company’s strategy, participate in capital operation and operation, and become an important link in the company’s market value management system and value growth chain.
The guidelines mentioned that investor relations management should enhance investors’ understanding and recognition of listed companies, so as to improve the governance level of listed companies and the overall value of enterprises, and achieve the purpose of respecting investors, rewarding investors and protecting investors, which is also consistent with the more emphasized orientation of “investor protection” in the new securities law. The guidelines further optimized the communication mode between listed companies and investors, promoted the construction and improvement of diversified communication channels, and encouraged listed companies to establish a communication mechanism with investors for major events, so as to ensure an efficient communication mode. Improved the basic principles of investor relations management of listed companies. In addition to adhering to the information disclosure of compliance, for the principle of equality, special emphasis is placed on creating opportunities and providing convenience for small and medium-sized investors to participate in investor management activities; The new initiative principle requires listed companies to actively carry out investor relations management activities, listen to investors’ opinions and suggestions, and respond to investors’ demands in a timely manner.
Everbright Securities Company Limited(601788) relevant person in charge said that protecting the rights and interests of minority shareholders of listed companies is not only the cornerstone of the development of the securities market, but also one of the core elements of corporate governance and investor relations coordination. Investors are the foundation of the sustainable development of the capital market. Respecting, respecting and protecting investors are the concrete embodiment of the people-centered development thought of the capital market. It has become the consensus of many excellent listed companies to further strengthen the management of investor relations and truly safeguard and implement the rights of investors to know, participate and supervise listed companies. We should comprehensively strengthen investor relations and cultivate a healthy and good market ecology.
“Information disclosure and investor relations management are important tools for listed companies to operate in the capital market.” Yunnan Baiyao Group Co.Ltd(000538) relevant person in charge said that earnestly safeguarding the legitimate rights and interests of investors is a prerequisite for all work. Listed companies need to strictly implement various codes of conduct to ensure that information disclosure is true, accurate, complete, timely and fair; In addition, by using multi-dimensional channels such as communication, research, interview, visit and product experience, we strive to build a three-dimensional communication platform for investors, actively convey the company’s cultural connotation, business situation and strategic orientation, and continuously enhance the majority of investors’ confidence in the company.
