The Rules for Share Repurchase of Listed Companies was revised and released, and experts interpret

Mondo Finance Updated on 2024-01-29

The China Securities Regulatory Commission (CSRC) yesterday (15th) issued normative documents related to cash dividends of listed companies, which will help further improve the normalized dividend mechanism of listed companies and improve the level of investor returns.

The CSRC's revised Guidelines on Cash Dividends further clearly encourage the orientation of cash dividends and promote the increase in the level of dividends. Strengthen institutional constraints such as disclosure requirements for companies that do not pay dividends, and urge dividends. Focus on the supervision of companies with more financial investment but low dividend levels, supervise and improve the level of dividends, and focus on the main business. In addition, the China Securities Regulatory Commission has also simplified the medium-term dividend procedures, strengthened the constraints on enterprises with abnormally high dividend proportions, and guided reasonable dividends.

In the revision of the relevant provisions of the "Articles of Association Guidelines", the CSRC encourages listed companies to increase the frequency of cash dividends, and at the same time urges companies to refine the dividend policy in the articles of association, clarify the target of cash dividends, and better stabilize investors' expectations.

The data shows that from January to November this year, the total dividend of A-shares was 21 trillion yuan, a record high, and the number of dividends accounted for about 657% and a dividend yield of 304%。

The Rules for Share Repurchase of Listed Companies were revised and issued.

In addition, yesterday, the China Securities Regulatory Commission also revised and issued the "Rules for the Repurchase of Shares of Listed Companies", experts said that this will continue to enhance the inclusiveness and convenience of the repurchase system.

The main contents of the revision of the "Share Repurchase Rules for Listed Companies" include focusing on improving the convenience of share repurchase, relaxing and adding a condition for repurchasing shares necessary to maintain the company's value and shareholders' rights and interests, and at the same time, further improving the repurchase restraint mechanism, and encouraging listed companies to form institutional arrangements for the implementation of repurchases.

Experts said that the revision enhances the inclusiveness and convenience of the buyback system.

Tian Lihui, Dean of the Institute of Financial Development of Nankai University: The revision of the rules mainly relaxes the requirements and conditions for repurchases, so that more companies can carry out repurchases and implement repurchases quickly.

Share repurchase has the functional role of optimizing the capital structure, maintaining the company's investment value, and improving the return mechanism for investors. The China Securities Regulatory Commission (CSRC) said that listed companies are encouraged to use repurchase tools in accordance with laws and regulations, actively return investors, and promote the stable and healthy development of the market.

*: CCTV news client.

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