The issuance and implementation of the amendment has improved the executability and operability of the market capitalization management process of listed companies, more clearly defined the definition, operating methods and regulatory conditions of market capitalization management, and achieved a perfect closed loop from what should be done to how to do it, reflecting the comprehensive and in-depth reform of China's capital market from one side.
The “Market Value Management Guideline” states that market value management refers to the strategic management behavior implemented by listed companies to improve the company’s investment value and shareholder return ability based on improving the company’s quality. The listed companies should firmly establish the shareholder’s return awareness, take measures to protect the interests of investors, especially small and medium-sized investors, be honest, adhere to the norms, focus on the main business, and operate soundly, promote the cultivation and use of new quality productivity, and improve the quality of operation and development, and on this basis do good investor relationship management, enhance the quality and transparency of information disclosure, and actively take measures to enhance investor confidence if necessary, promote the investment value of listed companies to reasonably reflect the quality of listed companies.
The quality of a listed company is the foundation of the investment value of a company and an important gripper of market capitalization management. The listed company should be based on improving the quality of the company, according to law and regulations, apply various ways to increase the investment value of the listed company.
Article 3 of the Market Value Management Guidelines clarifies the compliance methods of market value management of listed companies mainly include merger and acquisition restructuring, equity incentives, employee holding plans, cash dividends, investor relationship management, information disclosure, share repurchase, etc. The aforementioned compliance methods of market value management are not strange to the capital market, all belong to the capital market tools often used by listed companies, all of which are aimed at improving the quality of listed companies, and improving the quality of listed companies is the basis of market value management of listed companies, so the listed companies should mainly use the above methods to operate in the process of market value management.
The implementation of the Market Capitalization Management Guidelines heralds the formation of a more fair, open and efficient capital market. As listed companies continue to make improvements in market capitalization management, investors will have more opportunities to participate in the prosperity of capital markets.
