In recent years, the reform and development of state-controlled listed companies have made remarkable achievements. While increasing capital operation and optimizing ownership structure, they have improved value guidance expectations by increasing the proportion of cash dividends and other means.
According to the data, as of May 19, a total of 795 state-controlled listed companies in A-Shares issued dividend plans for 2021, and the amount of dividends is expected to exceed 950 billion yuan (before tax).
Insiders pointed out that these measures will greatly increase investor confidence and play a positive role in stabilizing the capital market. It is suggested that more state-owned enterprises bring market value management into the assessment scope.
asset securitization level continues to improve
Asset restructuring was carried out for five listed companies to promote the injection of high-quality assets with an estimated value of more than 15 billion yuan into listed companies; The accumulated financing amount through the capital market has reached 7.324 billion yuan… Since 2020, China Electronics Technology Group Co., Ltd. (hereinafter referred to as “CETC”) has promoted the value and efficiency of state-owned capital in the orderly flow.
“It has effectively solved the problem of small, scattered and weak of some listed companies.” Li Shouwu, deputy secretary of the Party group and director of CETC, said that as of April 15, 2022, the total market value of the 15 listed companies was 527.6 billion yuan, an increase of 26% over the beginning of 2020.
Deepening the reform of state-owned holding listed companies is not only an important part of the three-year action of state-owned enterprise reform, but also an inevitable move to improve the quality of listed companies. In recent years, we have continuously promoted the IPO of state-owned enterprises to the listing of a number of high-quality companies, and then injected more assets into the securities market.
Taking Shenzhen as an example, by the end of 2021, the number of Listed Companies in the whole system of state-owned assets in Shenzhen had increased to 35, and the asset securitization rate had reached 59.4%.
“Excellent increment, promote a batch of initial public offerings; live stock, restructure and integrate a batch; focus on operation and strategic mergers and acquisitions.” Ren Ping, member of the Party committee and deputy director of Shenzhen SASAC, summarized the operation path.
According to the data, since 2020, 38 enterprises in the state-owned assets system have been listed on the main board, and 51 enterprises have been listed on the gem, science and innovation board and Beijing stock exchange, with a direct financing of 257.4 billion yuan. Central enterprises injected 24 high-quality assets into holding listed companies, involving assets of 265.3 billion yuan.
SASAC made it clear that in the next step, we should continue to increase the injection of high-quality assets into listed companies, steadily explore the spin off and listing of qualified multi sector listed companies, and encourage cross shareholding between central and local state-owned enterprises.
This means that the securitization of state-owned assets is expected to accelerate in the future. Liu Xingguo, a researcher in the research department of China Enterprise Federation, believes that with the listing of more high-quality state-owned enterprises, it will further enhance the investment value of China’s capital market and attract more international capital.
equity incentive has made substantial progress
Through two “lightning” placements of new shares, the proportion of tradable shares reached 11.53%, which effectively solved the problem of stock liquidity, and the daily trading volume increased by nearly 20 times; In addition to the newly incorporated Hainan Strait Shipping Co.Ltd(002320) company, it has achieved full coverage of equity incentive of listed companies, granted 480 million shares in total, and covered more than 1400 core talents
Since the reorganization in 2016, China Ocean Shipping Group Co., Ltd. has continuously optimized the equity structure, increased equity incentive, and stimulated vitality and efficiency. By the end of March 2022, the total market value of the group’s existing 11 domestic and foreign listed companies was about 461.3 billion yuan, up 62% from the end of the 13th five year plan and 170% from the initial stage of the group’s restructuring in 2016.
Optimizing the ownership structure is an important part of deepening the reform of state-owned holding listed companies. In recent years, many state-controlled listed companies have made substantial progress in “secondary mixed reform” with the help of the capital market, improving the level of corporate governance by introducing strategic investors and implementing equity incentives.
Data show that since the three-year action of state-owned enterprise reform, a total of 86 state-owned holding listed companies have introduced active shareholders holding more than 5%. In addition to social capital, state-owned capital investment, operating companies, structural adjustment funds and innovation funds have become important participants.
At the same time, as an important measure to stimulate the vitality of enterprise employees, in recent years, SASAC has “shouted” several times to promote positive incentives, medium and long-term incentives and equity incentives, and the number of equity incentives implemented by state-controlled listed companies has increased significantly.
According to the data released by the SASAC, at present, the equity incentive coverage of listed companies controlled by central enterprises has reached 40%.
“Group companies should bring market value management into the scope of assessment, especially introduce medium and long-term incentive measures such as equity incentive, realize the linkage between employee incentive income and company market value, and promote state-owned listed companies to pay more attention to the improvement of enterprise long-term value and company market value, which will also have a far-reaching impact on the stable development of capital market.” Zhu Changming, head of the state-owned enterprise mixed reform and employee stock ownership research center of sunshine times law firm, said.
increasing cash dividends
“Set an example in promoting the healthy and stable development of the capital market.” SASAC requires that local SASAC should actively guide and support the share repurchase and cash dividend of state-controlled listed companies in accordance with the principle of facilitating enterprises. Group companies should be active and responsible shareholders, encourage long-term holding of shares of listed companies, and timely increase the holding of shares of listed companies with undervalued value. Listed companies should timely implement share repurchases to enhance investor confidence. The required funds can be raised through the issuance of preferred shares, bonds and other channels according to law.
The reporter noted that many state-controlled listed companies timely use the means of increasing the holdings of major shareholders, key core personnel and increasing the proportion of cash dividends to guide the reasonable return of the value of listed companies.
According to the data, as of May 19, a total of 795 state-controlled listed companies have issued dividend plans for 2021, of which 373 have been approved by the general meeting of shareholders and 422 are board meetings. The amount of dividends is expected to exceed 950 billion yuan (before tax).
“Share repurchases and cash dividends by state-controlled listed companies are the key to stabilizing the capital market and increasing investor confidence.” Zhu Changming believes that the group company should pay attention to the market value management of its holding listed companies, and take practical measures to simplify the decision-making and approval process of increasing holdings of shares of listed companies and share repurchase of listed companies. State owned listed companies should change the past phenomenon of emphasizing financing over dividends, constantly improve the level of cash dividends, let investors share the benefits and returns brought by the reform and development of state-owned enterprises and the growth of listed companies, and guide investors to take stock dividends as an important source of investment returns, which is conducive to forming the concept of long-term investment and value investment in the capital market, improving the capital market structure and avoiding excessive speculation.
In Zhu Changming’s view, the establishment of a sound dividend system and mechanism by state-owned holding listed companies can also force state-owned listed companies to improve their corporate governance structure, change their operation mechanism, effectively restrict the operation behavior of state-owned enterprises, encourage state-owned enterprise executives to take the long-term development of the company and actively repay shareholders as the goal, and promote state-owned listed companies to become an example of positive return to investors.
