Title: The new policy of the China Securities Regulatory Commission has changed, and the capital market has ushered in a stable rudder
Hi everyone, today let's talk about the recent hot topic - the new action of the Securities Regulatory Commission. Do you know? Some time ago, the China Securities Regulatory Commission held a meeting, and a series of news came that could be described as "nectar" for the stock market. They have put a lot of effort into ensuring the smooth operation of our capital market, which has made investors a little excited.
First of all, we have to say that this wave of operations by the China Securities Regulatory Commission has indeed injected a shot in the arm into the market. Not only did they boost market confidence and improve expectations, but they also specifically mentioned the need to strengthen patient capital. What does this mean? It is to make those bigwigs who have been investing for a long time and making steady progress have a greater presence in the market.
But you see, after these declarations, the stock market didn't take off as if it were bloody. As a result, after the market, the China Securities Regulatory Commission threw out a series of new rules to adjust the cash dividends and share repurchase rules of listed companies.
Let's talk about the buyback conditions first. The new regulations clearly relax the conditions for buybacks by listed companies. In the past, it had to fall by 30% to trigger a protective repurchase! Now, as long as it falls by 20%, the company can start the repurchase action. Wait, don't rush to go! There is an even more powerful adjustment -- if the closing price of the stock is 50% lower than the highest closing price of the past year, it can also trigger a buyback! It is simply a "buffer airbag" for listed companies, allowing them to flexibly respond to the sharp ups and downs of stock prices.
Next, let's talk about the lifting of the ban on the buyback window. In the past, there was a particularly disturbing rule, which was to prohibit buybacks at certain times. Well, now that rule is gone, listed companies can act at any time based on their own judgment of the market situation. But don't be too happy, it's not enough to implement buybacks and share issues at the same time, after all, we have to prevent those little tricks of manipulating stock prices.
Let's talk about the dividend policy. The new rules encourage companies to pay more dividends and pay dividends quickly – if conditions permit, speed up the medium-term dividend process! But at the same time, you can't be too capricious, and if the dividend ratio is unusually high, you have to consider the profit level, cash flow and debt issues.
Although the impact of these new regulations may be limited in the short term (after all, change always takes time), in the long run, it is definitely good news! The article mentions that these measures can stimulate the motivation of listed companies to stabilize their stock prices, and increase the overall market activity and investor gain.
All in all? I think the new regulations issued by the China Securities Regulatory Commission this time are quite powerful! Especially in the long run, it should be good news for our stockholders, right? Of course, in the specific implementation process, we still have to see how the details of the operation, before that, let's maintain an optimistic attitude!
After all, everyone wants to seize the opportunity to perform a wonderful performance on the capital stage, right?