take responsibility for the sharp decline! a-share first market capitalization management guidelines will be released
2024-09-27
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recently, the official website of the china securities regulatory commission issued a document stating that in order to further guide listed companies to pay attention to their own investment value and effectively improve investor returns, they have studied and drafted the "supervisory guidelines for listed companies no. 10 - market value management (draft for comments)" (hereinafter referred to as the "guidelines"). 》), now open to the public for comments. this is the first market value management guidance document for a-shares.
the "guidelines" require listed companies to improve operating efficiency and profitability based on improving the quality of listed companies, and use mergers and acquisitions, equity incentives, cash dividends, investor relations management, information disclosure, share repurchases, etc. in accordance with the actual situation and in compliance with laws and regulations. method to promote the improvement of the investment value of listed companies.
the "guidelines" clarify the responsibilities of listed companies' boards of directors, directors and senior managers, controlling shareholders and other relevant parties, and make special requirements for major index component companies to disclose market value management systems, and long-term net-breaking companies to disclose valuation improvement plans, etc. at the same time, the "guidelines" clearly prohibit listed companies from committing illegal activities in the name of market value management.
the china securities regulatory commission will further revise and improve it based on the public solicitation of opinions and then issue it for implementation. the "guidelines" have a total of 14 items in four aspects, with the main tone emphasizing "consolidation of responsibilities." specifically, the "guidelines" require major index component companies to clarify the response measures when their stock prices fall continuously or significantly for a short period of time:
article 8 of the "guidelines" clarifies that major index component companies should formulate and disclose the market value management system of listed companies after review by the board of directors, and at least clarify the following matters:
(1) specific departments or personnel responsible for market value management; (2) responsibilities of directors and senior managers; (3) internal assessment and evaluation methods of listed companies; (4) market value, price-earnings ratio, price-to-book ratio and other indicators of listed companies and the above indicators specific monitoring and early warning mechanism arrangements for industry average levels; (5) response measures for listed companies when their stock prices experience short-term continuous or significant declines.
article 13 of the "guidelines" clarifies the major index constituent companies, including the shanghai and shenzhen 300 index constituent companies; the science and technology innovation 50 and science and technology innovation 100 index constituent companies; the gem index constituent companies; the beijing securities 50 index constituent companies ; and other circumstances specified by the stock exchange.
major index constituent companies should provide special explanations on the implementation of the market value management system in their annual performance briefings. the short-term continuous or significant decline in stock prices refers to ① the cumulative decline in the closing price of a listed company's stock reaching 20% within 20 consecutive trading days; ② the closing price of a listed company's stock being lower than 50% of the highest closing price of the stock in the last year.
in addition, long-term net-breaking companies should disclose their valuation improvement plans, including goals, deadlines and specific measures. articles 8 and 9 of the "guidelines" provide special requirements for major index constituent companies and long-term net-breaking companies. first, major index component companies should formulate and publicly disclose market value management systems, clarify specific divisions of responsibilities, internal assessment and evaluation, etc., and provide special explanations on the implementation of the system in annual performance briefings. other listed companies can follow suit. second, companies with long-term net loss should disclose their valuation improvement plan, including goals, deadlines and specific measures, and provide a special explanation on the implementation of the valuation improvement plan in the annual performance briefing.
a long-term net-breaking company shall formulate and, after deliberation by the board of directors, disclose a listed company valuation improvement plan, including goals, deadlines, and specific measures. the relevant content and measures must be clear, specific, and enforceable, and statements that are likely to cause ambiguity or mislead investors shall not be used. . companies with long-term net loss should evaluate the implementation effect of the valuation improvement plan at least annually, improve it in a timely manner as necessary, and disclose it after review by the board of directors.
at the same time, the china securities regulatory commission clarified the responsibilities and obligations of relevant entities in market value management, stating that "the board of directors should pay attention to the improvement of the quality of listed companies." articles 4 to 7 of the "guidelines" respectively specify the boards of directors, directors and senior managers, and controlling shareholders of listed companies. the responsibilities and obligations of relevant entities have been clarified.
yangzi evening news/ziniu news reporter fan xiaolin
proofreading by sheng yuanyuan
