Recently, a number of listed financial institutions such as GF**, Guoxin**, and Ping An Bank have announced action plans for the double improvement of quality returns. The plan actively responds to the regulatory call from many aspects, such as being investor-oriented, focusing on the main responsibility and main business, and serving the development of the real economy. It is reported that in February this year, the Shenzhen Stock Exchange launched a special action of "double improvement of quality returns".
Zhang Jun, chief economist of Galaxy**, told the Chinese reporter that financial institutions can take multiple measures to improve the quality of returns: on the one hand, they should adhere to the fundamental purpose of financial services for the real economy and expand and strengthen their main business; On the other hand, risk management should be optimized and a comprehensive risk management framework should be established. In addition, the management of investment relations should be strengthened to promote mutual trust and long-term cooperation between financial institutions and investors.
Enhance investor returns.
On February 28, a number of listed financial institutions such as Oriental Wealth, GF**, Shenwan Hongyuan, Guoxin**, Ping An Bank, and Bank of Ningbo respectively issued announcements on the action plan of "double improvement of quality and return". Brokerage China reporters combed through and found that the action plans issued by these listed institutions clearly mentioned the ability to improve the ability to return investors.
Oriental Wealth said that it is necessary to explore an effective mechanism to effectively return shareholders. GF** emphasizes that it attaches great importance to investor returns. Shenwan Hongyuan said that it adheres to the principle of being investor-oriented and strengthens investor returns.
Some institutions summarized the actual practice of returning investors in the past. Guoxin** said that in the past ten years since its listing, the company's average annual cash dividend ratio has reached 3524%, the cash dividend ratio in 2021 and 2022 is more than 40%, insisting on returning all shareholders with real gold, and was selected into the 2021 "Rich Return List of Listed Companies" by the China Association of Listed Companies. Bank of Ningbo also said that the bank has paid a total of 258 dividends since its listing9.8 billion yuan.
Some institutions have introduced their plans to return investors in the future. Oriental Wealth said that on the basis of the existing annual equity distribution, the company will further strengthen communication with investors, especially small and medium-sized investors, and actively explore and optimize the long-term mechanism of shareholder returns.
Ping An Bank said that it is willing to steadily increase the dividend ratio on the premise that the profit and capital adequacy ratio meet the needs of continuous operation and long-term development, and fully safeguard the rights of shareholders to enjoy investment income in accordance with the law.
Improve the quality of development.
In addition to strengthening returns to investors, the six action plans also mention how to focus on the main business and improve the quality of development.
Brokerage China reporters combed and found that all institutions have emphasized the need to effectively serve the real economy. In terms of specific actions, Bank of Ningbo and Ping An Bank shared their practices in inclusive finance and digital finance, while four brokerages mentioned investment and financing services.
Brokerage China reporters noticed that unlike the traditional "separate battle" model of stocks and bonds, the investment banking business of securities companies continues to emphasize the extension of the service chain, and the characteristics of "investment + investment banking" are highlighted. As Guoxin ** said, the company has formed an in-depth service model covering the whole industry chain and the whole life cycle in photovoltaic, lithium battery, automobile, medical health, high-end manufacturing and other industries through IPO, direct equity investment, ** investment, convertible bonds, corporate bonds, refinancing, financial advisory, etc.
Another example is GF** said in the announcement that the company actively explores the mode of integration of industry and finance, and builds various forms of industries by deepening the integration of local industrial capital, creating industrial clusters, and supporting industrial transformation and upgrading; Coordinate the group's resources to provide enterprises with full life cycle services such as equity investment, sponsorship and listing, mergers and acquisitions, and market value management. By the end of 2023, GF** has invested in more than 700 non-listed companies, with an investment amount of more than 30 billion yuan.
"Scientific and technological innovation" is also a high-frequency word in the action plan, which can be summarized in two aspects:
The first is to increase financial support for science and technology enterprises, including increasing support for the cultivation of specialized, special and new enterprises. Both Ping An Bank and Shenwan Hongyuan mentioned this.
The second is to accelerate its own digital and technological transformation and deepen the empowerment of science and technology. As mentioned by Oriental Wealth, the company's self-developed "Miaoxiang" financial model is constantly exploring and optimizing in financial scenarios such as financial advancement, investment and research quality improvement, and transaction efficiency improvement, and is being integrated into the company's product ecology in an orderly manner.
In addition, it is worth mentioning that GF** and Guoxin** also elaborated on the concept of ESG and green finance at great length. Guoxin** mentioned that the company changed the name of the strategy committee of the board of directors to the strategy and ESG committee, and continued to improve the ESG governance structure.
It is due to the Shenzhen Stock Exchange's special action of "double improvement of quality and return".
It is reported that the action plan of the above-mentioned institutions is due to the special action of "double improvement of quality and return" launched by the Shenzhen Stock Exchange in early February this year.
On February 1, the Shenzhen Stock Exchange invited 12 leading representative companies to discuss and exchange, and officially launched the special action of "Double Improvement of Quality and Return". The purpose of this special action is to promote the quality of listed companies from four aspects: enhancing the awareness of focusing on the main business, improving the ability of innovation and development, improving the quality of information disclosure and strengthening the level of standardized operation, implementing the concept of investor-oriented, and striving to guide listed companies to strengthen the awareness of investor returns.
The release of this wave of announcements can be regarded as an important measure for listed companies to actively respond to market concerns, improve governance and strengthen investor relations management. Tian Lihui, dean of the Financial Development Research Institute of Nankai University, said in an interview with a Chinese reporter from a brokerage.
Zhang Jun told the brokerage China reporter that the listed companies focused on releasing action plans to enhance their competitiveness, while sending a positive profit signal and boosting investor confidence. In the long run, the measures are expected to improve the efficiency and quality of financial services, promote the stability of the capital market, and provide more solid support for high-quality development.
On February 28, the Shenzhen Stock Exchange organized a symposium for listed companies to understand the development of enterprises and industries, and listened to opinions and suggestions on strengthening the construction of the capital market and the Shenzhen Stock Exchange, accelerating the formation of new quality productivity, and promoting high-quality economic development. Sha Yan, Secretary of the Party Committee and Chairman of the Shenzhen Stock Exchange, attended and delivered a speech, and 8 chairmen of listed companies participated in the discussion.
The responsible comrades of the Shenzhen Stock Exchange listened carefully to the speeches of the chairmen of the participating companies, and expressed their gratitude to everyone for their strong support for the work of the Shenzhen Stock Exchange and their valuable opinions and suggestions. The responsible comrade of the Shenzhen Stock Exchange said that the Shenzhen Stock Exchange will conscientiously implement the spirit of the first financial work conference and the first executive meeting, in accordance with the unified deployment of the China Securities Regulatory Commission, establish the investor-oriented concept, and take "strict supervision, risk prevention, and development" as the main line of work, continue to strengthen the supervision of the whole process, resolutely investigate and deal with violations of laws and regulations, promote the standardized and healthy development of listed companies, and better play the role of the hub function and platform. Promote the formation of new quality productivity at an accelerated pace. The Shenzhen Stock Exchange will carefully study and absorb the opinions and suggestions put forward by the participants, strive to do its own work in a practical and meticulous manner, further build consensus, give full play to the joint force, and help the high-quality development of the capital market.
Putting it into practice is key.
These action plan announcements are mainly in response to the CSRC's 'investor-oriented' requirements, which to a certain extent will help boost investor confidence, but without external oversight measures, announcements will often become slogans on paper. Gao Minghua, director of the Corporate Governance and Enterprise Development Research Center of Beijing Normal University and executive director and secretary general of the Academic Committee of the China Corporate Governance 50 Forum, told the Chinese reporter of the brokerage.
On how to implement the measures to improve quality and return from the supervision level, Tian Lihui mentioned that regulators need to take a variety of measures, including strengthening supervision, establishing an effective supervision mechanism, strengthening information disclosure and transparency, implementing strict reward and punishment mechanisms, encouraging social supervision, and strengthening international cooperation and exchanges.
Gao Minghua emphasized the importance of information disclosure. In his view, improving the quality and return of listed companies cannot be separated. To improve returns, it is first necessary to solve the problem of how much profit can be generated by listed companies, but the current information disclosure is not perfect enough, and "the profits of listed companies are not transparent enough".
Gao Minghua pointed out that in terms of implementing the double improvement of quality and return, it is necessary to allow small and medium-sized investors to participate in corporate governance at a lower cost and in a more convenient way. From the regulatory level, it can be considered to integrate the rules and regulations on anti-fraud, insider trading, class action lawsuits, etc., and specifically introduce an investor protection case.
At the same time, he mentioned that in addition to doing a good job in information disclosure, we can consider using the form of cumulative voting to elect more neutral and independent small and medium-sized investors into the board of directors. In addition, it is also necessary to support small and medium-sized investors to be able to file class action lawsuits at a lower cost and threshold. "Internal and external forces must be used at the same time to truly implement the company's announcement. ”
In Zhang Jun's view, to promote the implementation of this plan, we can start from three aspects: First, we should establish and improve the regulatory system and strengthen the risk monitoring and management of the capital market. Prevent the occurrence of systemic risks by identifying, assessing and responding to various financial risks in a timely manner; Second, we should actively promote the construction of market transparency and fairness to ensure that all market participants can compete in a level playing field, so as to improve market efficiency and enhance investor and consumer confidence. Finally, the quality of financial services should be improved, consumer protection should be strengthened, and consumer satisfaction with the quality of financial services should be improved.
Liu Jiawei, a non-bank analyst at Dongxing, said that it is recommended to strengthen the disclosure of various information, and the company should strengthen communication with the market, establish a good brand image, and enhance the company's competitiveness.