China s construction market continues to be active, and the market value management assessment of ce

Mondo Finance Updated on 2024-02-01

China's construction market has shown a continuous active trend in recent days, and the net ** of the land stock connect funds has been net for 5 consecutive days, with a cumulative net ** of 103.9 billion yuan. This positive signal shows that China's construction industry is becoming increasingly attractive to domestic and foreign investors, and the capital market's confidence in China's construction industry continues to grow.

According to the news, the recent high-level assessment and distribution work meeting of ** enterprises and local SASAC has put forward new requirements for the market value management of central enterprises. The meeting decided to comprehensively promote the market value management assessment of listed companies on the basis of the pilot project in the early stage. This initiative aims to guide companies to pay more attention to the intrinsic value and market performance of listed companies, convey confidence, stabilize expectations, and better reward investors.

SASAC will adhere to the principle of equal emphasis on process and results, equal incentives and constraints, and quantitatively evaluate the market performance of listed companies controlled by ** enterprises. At the same time, punishment will be strengthened for violations to guide enterprises to standardize their operations and avoid stepping on the red line or crossing the bottom line. The implementation of this policy will help improve the market-oriented operation level of central enterprises and promote their sustainable development.

According to the statistics of China Merchants**, from 2023 to January 28, 2024, 18 A-share listed companies controlled by 12 central enterprise groups have implemented repurchase plans, with a scale of about 6.5 billion yuan; In addition, 34 listed companies of central and state-owned enterprises have been increased by major shareholders, with an increase of about 10.7 billion yuan. Among them, China State Construction issued the "Announcement on the Controlling Shareholder's Plan to Increase the Company's Shares" on October 20, 2023, and the company's controlling shareholder, China State Construction Group, intends to increase its holdings of the company's A shares through centralized bidding through the Shanghai ** Exchange trading system within 6 months from the date of disclosure of the announcement, with a total amount of not less than RMB 500 million and no more than RMB 1 billion. The increase in holdings by controlling shareholders demonstrates confidence in long-term development, which is conducive to enhancing the recognition of investors in the secondary market, guiding the reasonable return of value, and driving the company's valuation to increase.

Mr. Xing Xing, director of Beijing Boshing** Research Institute, believes that with the increasing attention of the heads of central enterprises to the market performance of the listed companies they control, market-oriented market value management methods such as increasing holdings and buybacks may appear more frequently. At the same time, the cash dividend ratio is also expected to be further increased to give back to the majority of investors. China State Construction's cash dividends in 2022 exceeded 10 billion, ranking first among the eight major construction central enterprises, and the dividend yield was once as high as 525%, intrinsic value is now beginning to emerge.

The activity of China's construction market and the comprehensive promotion of the market value management assessment of central enterprises indicate that China's construction industry is entering a new stage of development. This stage will pay more attention to the intrinsic value and market performance of enterprises, providing investors with more confidence protection. At the same time, it will also promote the competitiveness of central enterprises in the global construction market and make greater contributions to the country's economic and social development.

Note: The above information is compiled based on public information and is for reference only!

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