In the current context of economic globalization and marketization, as an important part of the national economy, the importance of market value management of central enterprises has become increasingly prominent.
The SASAC plans to introduce a market value management assessment in 2024, which reflects the country's further requirements for the high-quality development and market-oriented operation of central enterprises. This move will prompt central enterprises to pay more attention to market value management, optimize resource allocation, enhance market competitiveness, and strengthen returns to investors.
Based on this background, central enterprises need to change the past business mode of focusing solely on financial indicators, and pay more attention to the matching of market value growth and intrinsic value to achieve sustainable development.
The application and key points of market value management tools
Market value management should not be equated with stock price management, market value management covers multiple links such as value creation, value delivery and value realization, and is a systematic project.
Due to the state-owned nature of central enterprises, they need to be more cautious when using sensitive measures such as equity incentives to ensure compliance. Therefore, as an important means of market value management, equity incentives are sensitive and complex in central enterprises.
However, with the deepening of reform and the improvement of the degree of marketization, central enterprises have a certain possibility of breaking the situation in terms of equity incentives. Possible breakthroughs include clearer and more detailed regulatory guidance to provide an operational basis for the implementation of equity incentives by central enterprises, as well as a more open and inclusive external market atmosphere.
In addition to conventional means such as share buybacks, central enterprises can also explore other innovative means based on their own characteristics, such as strategic cooperation and asset restructuring.
The key points include clarifying the objectives and positioning of market value management, selecting appropriate market value management methods, and strengthening internal control and risk management.
In addition, when central enterprises manage market value, they also need to comprehensively consider the intrinsic value, market performance, investor relations and other aspects of the enterprise.
The source and risk definition of the funds for the increase and repurchase of central enterprises
The funds for increasing holdings and repurchasing by central enterprises mainly come from their own funds, bank loans or bond issuance. When using these funds for market value management, it is necessary to carefully assess the risks to ensure that there is no loss of state-owned assets. If the increase in buybacks does not help the stock price rise, it is necessary to analyze the reasons in depth, adjust the strategy, and strengthen internal controls.
In addition, in order to avoid risks such as market value management, stock price manipulation and insider trading, central enterprises need to establish a sound system design. This includes improving relevant laws and regulations, strengthening the supervision and punishment of market value management behavior, and establishing a transparent information disclosure mechanism to ensure that investors can fully understand the company's operations and market value management strategies.
The market value management of central enterprises is a continuous process, which requires continuous innovation and improvement. In the future, central enterprises should pay more attention to value creation and value realization, and achieve the simultaneous improvement of intrinsic value and market value by optimizing resource allocation, improving operational efficiency, and strengthening innovation-driven.
At the same time, central enterprises also need to strengthen investor relations management, enhance communication and interaction with investors, and enhance the market image and brand value of enterprises.
All in all, the market value management of central enterprises is a complex and important issue, which requires the joint efforts of enterprises, governments and all sectors of society to promote its development and improvement. By strengthening institutional construction, optimizing management methods, and enhancing market competitiveness, central enterprises can achieve the common growth of market value and intrinsic value, and make greater contributions to the country's economic development and market-oriented reform.
(The author, Wang Yiming, is the first donor of Tsinghua University's Malaysia-Singapore Development Fund and the chief consultant of Xinzheng Public Opinion and Market Value Management)
Note: The accompanying images have nothing to do with the text.