Phoenix TV:

We've noticed that the new "National Nine Articles" for capital market regulation published this year outlined specific requirements for listed companies to improve their investment value and strengthen market capitalization management. What measures will the CSRC take next to further these efforts? Thank you.

Wu Qing:

Thank you for your questions. Listed companies are the foundation of the market. The capital market will only prosper and thrive when listed companies create value for investors and continuously provide returns. The CSRC proactively supports listed companies in improving their operation efficiency and enhancing profitability. The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) also follows an approach of offering specific policies tailored to individual enterprises and intensifying oversight of the market capitalization management of listed central state-owned enterprises (SOEs). Listed companies must improve the transparency of information disclosure, enhance standards of corporate governance, strengthen investor communication, and reward investors via various measures such as dividend distribution and share buybacks. Since the beginning of the year, more than 95% of listed companies have held performance briefings. A total of 663 announcements on mid-term dividends have been made by these listed companies, with the expected dividend payout reaching 533.7 billion yuan. Over 1,500 companies carried out share buybacks, with an aggregated value exceeding 100 billion yuan.

To improve the quality of listed companies and enhance investment value, listed companies must take their responsibilities seriously. We've worked with relevant departments to formulate guidelines for market value management of listed companies, mandating compliance in accordance with the law. First, boards of directors must prioritize investor protection and returns, strengthening the foundation of market value management through improved operations, management, profitability, and core competitiveness. Second, listed companies are required to actively use market value management tools like mergers and acquisitions, equity incentives, and major shareholder share purchase to enhance investment value. Third, listed companies must establish regular buyback mechanisms, and qualified companies are encouraged to plan and reserve capital in advance. Fourth, persistently undervalued companies must develop and publicly disclose value enhancement plans with implementation assessments, creating market constraints. Fifth, major index constituent companies must take responsibility by establishing market value management systems, clarifying responsibilities and response measures, and regularly disclosing implementation actions. It's crucial to emphasize that while strengthening market value management, listed companies and relevant parties must improve compliance awareness and avoid market manipulation, insider trading, or other illegal and irregular activities under the guise of market value management.

We'll soon seek public input on the draft guidelines for market value management. At the same time, we're collaborating with relevant ministries to establish market-based incentives and restraint mechanisms for share buybacks by listed companies. This aims to stimulate intrinsic motivation among major shareholders, senior executives and other key stakeholders, further enhancing the investment value of listed companies. Thank you.