The State-owned Assets Supervision and Administration Commission of the State Council recently issued the "Several Opinions on Improving and Strengthening the Market Cap Management of Central Enterprises Holding Listed Companies". The Opinions consist of nine points, mainly including the following content:

First, clarify the goals and direction of market cap management. The Opinions require central enterprises to base the development quality of listed companies to guide holding listed companies in implementing major deployments of deepening State-owned Enterprise Reform, enhancing core functions, boosting core competitiveness, effectively playing a role in Technology innovation, industry control, and safety support, and striving to create first-class listed companies.

Second, make good use of the market cap management "toolbox". The Opinions propose that central enterprises improve and strengthen the market cap management work of holding listed companies from six aspects: mergers and acquisitions, market-oriented reforms, information disclosure, investor relations management, investor returns, and Share Buyback. Support holding listed companies in implementing mergers and acquisitions to enhance core competitiveness in main business and boost Technology innovation capability and promote industrial upgrading; guide holding listed companies to increase market-oriented reform efforts in aspects of improving corporate governance and regulating Stock-based Incentive implementation, stimulating vitality of listed companies; urge holding listed companies to comprehensively improve the quality of information disclosure, perfect ESG management systems, strengthen public opinion information collection and analysis, and effectively maintain corporate image and brand reputation; guide holding listed companies to strengthen investor communication through multiple channels and forms, enhancing market recognition; lead holding listed companies to firmly establish investor return awareness, increase the frequency of cash dividends, optimize cash dividend rhythm, and raise cash dividend ratio; promote central enterprises and holding listed companies to establish a normalized Share Buyback mechanism, standardize Shareholding behavior, and actively address the long-term issue of holding listed companies being undervalued.

Third, enhance work mechanisms and strengthen positive incentives. The Opinions require central enterprises to regard market cap management as a long-term strategic management behavior, establish a sound system and mechanisms for market cap management work, and improve work effectiveness. The State-owned Assets Supervision and Administration Commission will incorporate market cap management into the performance assessment of central enterprise leaders, strengthening positive incentives.

Fourth, adhere to compliance bottom line. Central enterprises and holding listed companies engaging in market cap management must strictly observe the bottom line of legal compliance, prohibit manipulating information disclosure under the guise of market cap management, prohibit stock price manipulation, prohibit insider trading, and seriously hold accountable for illegal violations.