SASAC Issues Nine Opinions to Improve Market Value Management for Central SOEs’ Listed Companies

On December 17, 2024, the State-owned Assets Supervision and Administration Commission (SASAC) published the Several Opinions on Improving and Strengthening the Market Value Management of Central State-Owned Enterprises’ (SOEs) Listed Companies (the “Opinions”)on its website.

The Opinions consist of nine points, proposing that central SOEs should enhance and strengthen the market value management of their listed companies through mergers and acquisitions, market-oriented reforms, information disclosure, investor relations management, investor returns, and stock repurchase and increase. Specifically, the Opinions guide listed companies to intensify market-oriented reforms by improving corporate governance and standardizing the implementation of equity incentives. They also urge listed companies to comprehensively improve the quality of information disclosure, enhance ESG management systems, strengthen the collection and analysis of public opinion information, and guide listed companies to increase the frequency of cash dividends, optimize the timing of cash dividends, and raise the proportion of cash dividends. Additionally, the Opinions promote the establishment of a regular mechanism for stock repurchase and increase by central SOEs and their listed companies, regulate reduction behaviors, and actively address the long-term issue of listed companies trading below net asset value.