Industry experts said that although the regulator has put forward higher requirements for the market value management of state-owned enterprises and improved investor confidence, market supervision should be further improved and improved to protect the interests of small and medium-sized investors, which is crucial for the long-term stability and healthy development of China.
On Thursday, the average share price of A-share state-owned enterprises was **7Driven by 08%, the A** market was strong**, and the benchmark Shanghai Composite Index soared 303%, back to the level of 2900 points. The Shenzhen Component Index also jumped 2%, and the Shenzhen Growth Enterprise Market, which is dominated by technology stocks, was ***145%。
Trading was more active on Thursday. The total trading volume of the Shanghai and Shenzhen exchanges was 17% higher than the previous trading day**, approaching 900 billion yuan ($126 billion).
The day before Thursday, the State-owned Assets Supervision and Administration Commission said it would work hard to study the inclusion of market value management in the performance appraisal of executives of listed state-owned enterprises, so that these executives would pay more attention to the company's market performance.
State-owned enterprises (SASAC) said SOEs should use market-oriented measures, such as timely increases in holdings and buybacks, to inject confidence, stabilize expectations, and increase cash dividends to provide better returns for investors.
Yang Delong, chief economist of First Binhai**, said that the latest announcement of the State-owned Assets Supervision and Administration Commission has played an important role in stimulating the A** market and has greatly enhanced market sentiment.
Given the huge market capitalization of listed SOEs, their bullish performance will be an important upside force for the index. He said investors will have higher expectations for the future market performance of SOEs.
Xu Yugao, secretary of the board of directors of China National Offshore Oil Corporation, said that the new measures of the SASAC will guide listed state-owned enterprises to improve their market value management system, while improving the company's intrinsic value and market value.
Huang Wensheng, vice president of China Petroleum & Chemical Corporation, said that while developing its main business, it will maintain the continuity and stability of the dividend policy. Improve the quality of information disclosure according to the needs of investors.
Zhou Changjiang, secretary of the board of directors of China Communications Construction Co., Ltd., said the company launched an equity incentive plan in 2023 as a way to better manage its market value.
Xie Xiaobing, director of the State-owned Assets Supervision and Administration Commission (SASAC), said that while strategic emerging industries account for 40% of A-share listed SOEs, efforts should continue to be made to cultivate more industry leaders and improve corporate governance to further improve the quality of SOEs.
Liu Xingguo, a senior researcher at the China Enterprise Confederation, said that the ongoing industrial upgrading of state-owned enterprises, coupled with their improved market value management, will stabilize the company's stock price, which is conducive to the overall stability of the capital market.
Wang Jianjun, vice chairman of the China Securities Regulatory Commission, said that while the quality assessment system for listed companies should be optimized by paying more attention to investor returns, companies with major violations or not providing investment value should be eliminated sooner to further consolidate and standardize the delisting mechanism.
Chen Li, chief economist of Chuancai**, stressed that regulation should not be relaxed, because this is the foundation of a safe and stable market. Only by standardizing and transparent market environment can we enhance investor confidence and improve the quality and investment value of listed companies.