On December 17th, the State owned Assets Supervision and Administration Commission of the State Council issued the "Several Opinions on Improving and Strengthening the Market Value Management of Listed Companies Controlled by Central Enterprises", which requires central enterprises to regard market value management as a long-term strategic management behavior and guide the refinement of annual implementation plans and specific measures for listed companies controlled by central enterprises. Make good use of the market value management "toolbox" and support listed companies to implement mergers and acquisitions around improving their main business competitiveness, enhancing their technological innovation capabilities, and promoting industrial upgrading; Actively solve the long-term net loss problem of holding listed companies; Incorporate market value management into the performance evaluation of central enterprise leaders and strengthen positive incentives. The head of the Property Rights Management Bureau of the State owned Assets Supervision and Administration Commission of the State Council stated that in the next step, the State owned Assets Supervision and Administration Commission of the State Council will focus on the implementation of the "Opinions", take enhancing the investment value of listed companies controlled by central enterprises and strengthening investor returns as a long-term task, guide and promote central enterprises to make good use of market value management methods, actively respond to market concerns, safeguard investor interests, and make new and greater contributions to promoting high-quality development of the capital market. The Opinion on Standardizing and Safely Implementing Spin off Listing proposes that central enterprises should improve and strengthen the market value management of controlling listed companies from six aspects: mergers and acquisitions, market-oriented reforms, information disclosure, investor relations management, investor returns, and stock buybacks and holdings. In actively carrying out mergers and acquisitions that are conducive to increasing investment value, the Opinion clarifies that central enterprises should grasp the development laws of the capital market, deeply understand the logical transformation of market valuation, promote the further aggregation of high-quality resources within the enterprise to the holding listed companies, and support the holding listed companies to implement mergers and acquisitions around improving their main business competitive advantages, enhancing their technological innovation capabilities, and promoting industrial upgrading. Encourage diversified holding listed companies to further highlight their professional development characteristics, explore the independent, high-quality, growth oriented, and industry differentiated competitive advantages of internal businesses, standardize and prudently implement spin off listings, and further tap into the market value of the company in segmented industry fields. Support holding listed companies to accelerate the layout of strategic emerging and future industries through mergers and acquisitions based on their own industrial foundation and main business development plans, cultivate new quality productivity, and build industry-leading enterprises. Strictly control the external mergers and acquisitions of listed companies that blindly expand, increase excess production capacity, damage financial health, and reduce operational efficiency. The demand for market value management is expected to accelerate the industrial mergers and acquisitions of central state-owned enterprises Pan Xiangdong, Chief Economist of Qirui Research Institute, stated that in the specific ways of market value management, mergers and acquisitions can help listed companies enhance their intrinsic value. Looking ahead to 2025, state-owned listed companies can seize policy opportunities and improve their corporate quality through horizontal integration, vertical integration, and diversified strategic mergers and acquisitions. In terms of improving institutional arrangements to enhance investor confidence, the Opinion proposes that central enterprises and controlling listed companies should regard stock repurchase and increase as a long-term fundamental work and establish a normalized stock repurchase and increase mechanism. Continuously improving the ability to cope with complex situations in the capital market, guiding controlling listed companies to plan ahead for short-term continuous or significant stock price declines, improving response speed, decision-making efficiency, and execution efficiency, stabilizing market sentiment, and effectively maintaining the market value of listed companies. Strictly abide by the regulations on reducing holdings by controlling shareholders and actual controllers, strictly prohibit illegal or indirect reductions, and encourage central enterprises to boost investor confidence through voluntary extension of stock lock up periods, voluntary termination of reduction plans, and commitments not to reduce holdings. The Opinion proposes to attach great importance to the issue of controlling listed companies' net worth, include solving long-term net worth problems as a key annual task, guide long-term net worth listed companies to formulate disclosure valuation improvement plans and supervise their implementation; For net worth listed companies with weak business synergy, poor stock liquidity, and basic loss of functionality, it is encouraged to dispose of them through absorption mergers, asset restructuring, and other means. Long term net worth not only affects the market image and investment value of listed companies, but may also have a negative impact on investor confidence Zhou Lisha, a researcher at the China Enterprise Reform Research Association, stated that for listed companies that have consistently exceeded their net worth, the State owned Assets Supervision and Administration Commission of the State Council requires them to develop disclosure plans for valuation enhancement and supervise their implementation. This measure aims to encourage listed companies to take proactive measures to improve their operating conditions, enhance profitability, and ultimately improve their stock price performance. In addition, Zhou Lisha stated that the increase in stock repurchases conveys the confidence of shareholders and company management in the future development of the company to the market, which helps stabilize market sentiment and attract more investors' attention. At the same time, by voluntarily extending the lock up period of stocks, voluntarily terminating the reduction plan, and committing not to reduce stock holdings, central enterprises convey confidence in the future development of the company to the market, reduce market pressure caused by major shareholders' reduction, thereby stabilizing stock prices and boosting investor confidence. In terms of actively strengthening investor relations management by increasing the proportion of cash dividends, the "Opinions" clearly urge the chairman, general manager, and other personnel of holding listed companies to actively organize and participate in various investor relations activities such as performance briefing meetings and investor communication meetings, truthfully introduce the production and operation situation and achievements of the enterprise, fully demonstrate the competitive advantages and development prospects of the enterprise, and attract more long-term investment, value investment, and rational investment. Widely invite investors, industry analysts, media, etc. to enter the company, understand the company, and enhance market recognition. In terms of stabilizing investor return expectations, the "Opinions" propose to guide holding listed companies to comprehensively consider industry characteristics, profitability, capital flow and other factors, formulate reasonable and sustainable profit distribution policies, enhance the stability, sustainability and predictability of cash dividends, increase the frequency of cash dividends, optimize the pace of cash dividends, and increase the proportion of cash dividends. In addition, the Opinion clearly states that it is strictly prohibited to manipulate information disclosure of listed companies under the guise of market value management, manipulate stock prices, and engage in insider trading. Those who violate regulations, fail to perform or improperly perform their duties, resulting in losses of state-owned assets, damage to the legitimate rights and interests of investors, or other serious adverse consequences, shall be held accountable in accordance with the law and regulations. (New Society)