Recently, the high-profile national nine policies were officially introduced, which not only reflects the country's firm determination for the healthy development of the capital market, but also indicates that the future market pattern will usher in profound changes. This policy is particularly eye-catching for its dual positive effects, one is to raise the threshold for listed companies and crack down on pre-listing surprise dividends, and the other is to strengthen the punishment of dividends and financial fraud for profitable enterprises, so that enterprises in the market can truly show their true face.
The raising of the threshold for listed companies under the nine national policies is undoubtedly a deep purification of the market. In the past, in order to quickly go public and make money, some enterprises often resorted to surprise dividends and other methods to beautify their financial statements and cover up their true business conditions. However, with the implementation of the National Nine Articles, this mode of operation will be unsustainable. The new policy sets stricter standards in terms of financial status, governance structure, information disclosure, etc., and effectively improves the overall quality of listed companies. This change will prompt companies to pay more attention to the improvement of their own strength and the creation of long-term value, rather than just pursuing short-term listing benefits.
At the same time, the punishment for dividends and financial fraud of profitable enterprises has also been significantly strengthened. The new policy leaves no room for those who try to disguise themselves as profitable businesses through financial fraud. Under strict supervision, companies that attempt to commit financial fraud must bear higher costs, including financial pressures such as increasing dividends. This will significantly reduce the incentive for companies to commit fraud, while increasing the likelihood of their performance revisions. Taking Hongbo shares as an example, such enterprises may be just the tip of the iceberg, with the in-depth implementation of the national nine articles, the true face of more enterprises will gradually surface.
The promulgation of the National Nine Articles is not only a deep reshuffle of the market, but also a strong guarantee for the healthy development of the market in the future. With the gradual implementation of the policy, those companies that are not doing well and trying to make money through listing will gradually withdraw from the market. Those large-scale central enterprises and private enterprises that really have strength and potential, although they may face the dilemma of performance losses, will continue to grow and develop with the support of the nine articles of the state with their huge revenue scale and ability to solve employment.
It is worth noting that the nine articles of the state mainly focus on the supervision and rectification of small enterprises and low-asset enterprises. This is not discrimination against small enterprises and low-net-worth enterprises, but a necessary adjustment for the healthy development of the market. In the past, due to problems such as inadequate supervision and information asymmetry, some small enterprises and low-asset enterprises took advantage of market loopholes to carry out improper capital operations, disrupting market order. The promulgation of the Nine Articles aims to curb the spread of this phenomenon, protect the legitimate rights and interests of investors, and maintain the fairness and impartiality of the market.
In addition, the implementation of the National Nine Articles will also have a profound impact on the investment style of the market. In the past, there was a prevalence of speculation in the market, and some investors often pursued short-term stock price fluctuations too much and ignored the fundamentals and long-term value of companies. However, with the in-depth implementation of the National Nine Articles, this investment style will be inhibited. Investors will pay more attention to the fundamentals and long-term value of companies, driving the market in a more rational and mature direction.
To sum up, the promulgation of the National Nine Articles marks an important step in the healthy development of the capital market. The policy has effectively promoted the standardization and maturity of the market by raising the threshold for listed companies, strengthening the dividends of profitable enterprises and the punishment of financial fraud. At the same time, the implementation of the National Nine Articles will also guide investors to pay more attention to the fundamentals and long-term value of enterprises, and promote the development of the market in a healthier and more mature direction. Looking forward to the future, we have reason to believe that under the guidance and promotion of the nine articles of the People's Republic of China, the mainland capital market will usher in a better tomorrow.