Source: Finance Association
① The loan balance has dropped by 24% since the implementation of the relevant system has been suspended and stocks have been gradually settled; ② they will continue to coordinate and guide various types of institutional investors such as public funds, private equity funds, and securities companies to enter the market more vigorously; ③ Listed companies should effectively assume the main responsibility of increasing their investment value, actively enhance investor returns, and actively maintain market stability.
To take care of the market, the Securities Regulatory Commission has taken serious action. Multiple policies have been issued in unison, and “large quantity is controlled enough.”
On February 6, the official website of the Securities Regulatory Commission published 4 highlights, namely “The Securities Regulatory Commission held a symposium to support mergers, acquisitions and restructuring of listed companies”, “The Securities Regulatory Commission held a symposium on promoting the enhanced investment value of listed companies”, “the CSRC press spokesperson answered questions from reporters on the situation of the 'two finances' securities lending business”, and “the CSRC press spokesperson answered questions from reporters on the Central Huijin Company's shareholding announcement”.
The Securities Regulatory Commission has made important statements on all of the above related issues:
Regarding the increase in Central Huijin's holdings, the Securities Regulatory Commission said it will continue to coordinate and guide various types of institutional investors such as public funds, private equity funds, and securities companies to enter the market more vigorously;
Regarding the “two finance” securities lending business, the Securities Regulatory Commission proposed measures to strengthen supervision in three areas, including suspending the size of new securities companies in accordance with the law and gradually settling stocks. The securities lending balance has dropped by 24% since the implementation of the relevant system;
Regarding mergers, acquisitions and restructuring of listed companies, the Securities Regulatory Commission held a symposium, which mentioned important topics such as studying and implementing a “quick review” of the restructuring of leading companies with large market capitalization to support efficient mergers and acquisitions of high-quality assets by leading companies in the industry;
To enhance the investment value of listed companies, the Securities Regulatory Commission requires listed companies to effectively assume the main responsibility of increasing their own investment value, actively enhance investor returns, actively maintain market stability, and work together to boost investor confidence.
The CSRC's policy actions to maintain market stability have been frequent. It has continued for 3 consecutive days. From February 4 to now, the CSRC has posted more than 13 tweets in a row on its WeChat account. Judging from its policy characteristics, the CSRC has responded positively and positively to all the hot issues that the market is concerned about, and investors' sentiment has been greatly mitigated.
Regarding the increase in Huijin's holdings: The Securities Regulatory Commission will continue to coordinate and guide various institutions to enter the market more vigorously
A press spokesman for the Securities Regulatory Commission answered questions about the announcement of the Central Huijin Company to increase its holdings. The spokesperson said that he was concerned about the announcement of the Central Huijin Company. A spokesperson for the Securities Regulatory Commission pointed out that currently, the valuation level of the A-share market is at a historically low level, and medium- to long-term investment value is prominent, and it has been fully recognized by investment institutions including the Central Huijin Company.
A spokesman for the Securities Regulatory Commission said that it firmly supports the Central Huijin Company to continue to increase its scale and efforts, which will create more convenient conditions and smoother channels for its market entry operations. At the same time, we will continue to coordinate and guide various types of institutional investors such as public funds, private equity funds, securities companies, social security funds, insurance institutions, annuity funds, etc. to enter the market more vigorously, encourage and support listed companies to increase their repurchases and holdings, introduce more incremental capital into the A-share market, and make every effort to maintain the stable operation of the market.
The Central Huijin Company announced on February 6 that it fully recognizes the current allocation value of the A-share market. It has recently expanded the scope of increasing holdings of tradable open index funds (ETFs), and will continue to increase the efforts to increase holdings, expand the scale of holdings, and resolutely maintain the smooth operation of the capital market.
Regarding securities lending: The scale of new securities financing has been suspended, and the balance of securities lending has dropped by 24%
In response to reporters' questions about the “Two Finance” securities lending business, a CSRC press spokesperson said that after research and decision, the CSRC proposed three measures to further strengthen supervision of the securities lending business.
The first is to suspend the scale of new transfer securities, use the current balance of the securities as the upper limit, suspend the size of new securities companies' transfer notes in accordance with the law, and gradually end the stock;
Second, securities companies are required to strengthen the management of customer transactions, and it is strictly prohibited to provide securities loans to investors who use securities lending to carry out intraday revolving transactions (disguised T+0 transactions);
Third, we will continue to strengthen supervision and enforcement. We will crack down on illegal acts such as improper arbitrage using securities lending transactions in accordance with the law to ensure the smooth operation of the securities lending business.
Recently, the Securities Regulatory Commission has taken a series of measures to strengthen supervision of the securities lending business in line with market conditions. Since the implementation of the relevant system, the securities loan balance has declined by 24%. Currently, it has dropped to 63.7 billion yuan, accounting for 0.1% of the market value of A-shares in circulation.
About mergers, acquisitions and restructuring: supporting the efficient mergers and acquisitions of high-quality assets by leading companies in the industry
On February 5, the Securities Regulatory Commission held a symposium to solicit opinions and suggestions from some listed companies and securities companies on further optimizing the M&A and restructuring supervision mechanism, strongly supporting listed companies to enhance investment value through mergers, acquisitions and restructuring, and to exchange and discuss hot issues of market concern.
The conference believes that the quality of listed companies is the most important fundamental aspect of the capital market. Only when listed companies are of high quality can the capital market run stably, investors can get real returns, and small and medium-sized investors will be more willing to invest. China's economy is in a critical period for achieving high-quality development. Listed companies should effectively use mergers, acquisitions and restructuring tools, seize opportunities to inject high-quality assets, clear out inefficient production capacity, implement mergers and integrations, enhance investment value through their own high-quality development, and enhance investors' sense of acquisition.
The Securities Regulatory Commission said that in recent years, the Securities Regulatory Commission has continued to push for market-based reforms in mergers, acquisitions, restructuring, and restructuring, stimulating market vitality, abolishing some administrative licensing matters, optimizing regulatory requirements for restructuring and listing, and introducing a “small amount and quick” review mechanism for restructuring. In particular, since last year, the restructuring registration system has been fully implemented on the basis of the “Two Innovations” sector pilot, the validity period of financial data for stock issuance restructuring has been extended, and targeted convertible debt restructuring rules have been introduced to further optimize the restructuring policy environment. Overall, mergers, acquisitions, and restructuring market-based reforms have achieved positive results. Industrial mergers and acquisitions have gradually become mainstream in the market, and a large number of listed companies have improved quality, efficiency, and become better and stronger through mergers, acquisitions and restructuring.
At the Securities Regulatory Commission, the municipal department stated that the next step is to promote the relationship between development and strong supervision and risk prevention, and take more measures to revitalize the merger, acquisition and restructuring market, and support the implementation and results of outstanding typical cases.
The first is to increase inclusiveness in restructuring valuations and support both parties to the transaction to reasonably determine the transaction price on the basis of market-based negotiations.
Second, adhering to classification supervision, setting performance promises for majority shareholder capital restructuring requirements based on evaluation methods such as future earnings expectations. The parties involved in other types of restructuring can independently negotiate whether to agree on performance commitments.
The third is to study and implement a “quick review” of the restructuring of leading companies with large market capitalization to support efficient mergers and acquisitions of high-quality assets by leading enterprises in the industry. Further optimize the restructuring of the “small amount and quick” review mechanism.
Fourth, support mergers and acquisitions of “Two Innovations” companies that are in the same industry or upstream and downstream and have a synergy effect with their main business, and enhance the “three innovations” and “three innovations and four new” attributes of listed companies.
The fifth is to support absorption and mergers among listed companies (including listed companies not under the same control) and further broaden diversified exit channels. At the same time, we will continue to adhere to the investor-based concept, strengthen supervision, prevent risks, resolutely investigate and punish illegal acts such as financial fraud in restructuring transactions, and crack down on chaos such as “shell company” hype.
The participating listed companies stated that they will take into account the company's own situation, make good use of mergers, acquisitions and restructuring tools, actively improve the asset quality of listed companies, and enhance their ability to return returns to investors. The participating securities companies stated that they will strive to improve the level of professional services, actively play the role of transaction matchmakers, dig deeper into market demand, and effectively control “entry points” to help improve the investability of listed companies.
On improving investment value: Listed companies should take the initiative to improve investor returns
On the morning of February 5, the Securities Regulatory Commission held a symposium on promoting listed companies to enhance their investment value. The conference focused on the themes of strengthening the investor-based culture of listed companies, focusing on enhancing the investment value of listed companies, and vigorously promoting the high-quality development of companies, and listening to the relevant situation and opinions and suggestions of listed companies. Representatives of 12 listed companies attended the conference.
According to the conference, listed companies are the “basic market”, “ballast stone” and “excellent students” of the national economy. They are the source of investment value in the capital market. They must be honest, trustworthy, true and transparent, and standardized governance to improve the company's growth by focusing on the main business, enhance the ability to return to investors, and allow investors to share more of the company's development results. Since this year, listed companies have actively maintained the company's market value through repurchases, dividends, strengthened investor relations, and management of expectations, etc., and have accumulated useful experiences and practices.
The conference emphasized that enhancing the investment value of listed companies is an important expression of implementing the investor-centered concept and an important aspect of improving the quality of listed companies. Listed companies should effectively assume the main responsibility of increasing the value of their own investments, actively enhance investor returns, actively maintain market stability, and work together to boost investor confidence.
First, we attach great importance to increasing the investment value of listed companies. Listed companies must pay attention to the market's reflection on the company's value, thoroughly analyze the causes of abnormal market value fluctuations, and take timely and effective measures to improve the company's investment value.
Second, it is necessary to establish an internal long-term mechanism to enhance investment value and strengthen listed companies' own thinking on increasing the investment value of listed companies.
Third, make full use of the “toolbox” to enhance investment value in accordance with the law, including market tools such as share repurchases, majority shareholders' holdings, normalized dividends, mergers, acquisitions, and restructuring.
Fourth, take the initiative to strengthen communication with investors and effectively improve investors' expectations through performance briefings, road shows, etc.
In the next step, the Securities Regulatory Commission will benchmark the relevant requirements of the Central Financial Work Conference, continue to carry out investor-based cultural construction training for listed companies, optimize and improve the listed company supervision system, support listed companies to grow bigger and stronger, actively maintain market stability through the capital market, and jointly push the quality of listed companies to a new level.
editor/tolk