On the evening of January 29, a bank issued an announcement saying that because the ** price was lower than the net assets per share for 20 consecutive trading days, the conditions for triggering the stock price stabilization measures were met. The company will formulate a specific plan to stabilize the stock price, and implement it after completing the relevant internal decision-making procedures.
The long-term failure of listed companies will not only affect their image in the capital market, but may also lead to hostile takeovers. In addition, the net breaking will affect the refinancing process of listed companies.
According to the data, as of January 30**, more than 500 A-share listed companies have fallen below their net assets, including 78 listed companies controlled by central enterprises. From the perspective of industry attributes, there are also listed companies in basic chemicals, steel, medicine and biology industries.
At present, many parties are actively taking measures to boost confidence and stabilize the capital market. On January 28, the China Securities Regulatory Commission (CSRC) announced that it would further strengthen the supervision of securities lending business and completely suspend the lending of restricted shares. The move aims to maintain the fairness and stability of the capital market. On January 29, the State-owned Assets Supervision and Administration Commission (SASAC) proposed to comprehensively promote the market value management assessment of listed companies and guide enterprises to pay more attention to the intrinsic value and market performance of listed companies.
Catalyzed by multiple policies, the market has many expectations for the return of the valuation of net-breaking listed companies, and is also tapping potential targets.
The author believes that listed companies should take active actions to drive the return of valuations. On the one hand, we should pay attention to the management of market value to ensure that the financing channels are unimpeded. On the other hand, when valuations are significantly low, measures should be taken to convey confidence, stabilize expectations, and better reward the market and investors. It is suggested that listed companies can formulate measures from the following three aspects:
First, buy back the shares of its own listed companies. At present, listed companies actively carry out share repurchases, and under normal circumstances, the repurchased shares are either used for cancellation, equity incentives, employee stock ownership plans, etc. In contrast, encouraging more deregistration buybacks by listed companies will help effectively improve the return on investment of the company's shareholders.
Second, encourage important shareholders such as controlling shareholders of net-breaking listed companies to increase their holdings. The increase in holdings from important shareholders can demonstrate confidence in the future development of listed companies.
Third, encourage listed companies to appropriately increase the cash dividend ratio and increase the dividend yield, so that investors can share the fruits of the development of listed companies. On the one hand, a high proportion of cash dividends means that the company has sufficient liquidity, releasing a signal of stable operation and continuous improvement in performance; On the other hand, increasing dividend yields can help attract long-term investors.
In addition to the above measures, listed companies also need to improve the quality of development in the long term, realize their own value mining and improvement, in order to attract long-term capital inflows, so as to do a good job in the capital market of "promoting the return of the valuation of listed companies with broken nets".