The special initiative titled Corporate Value and Return Enhancement for companies listed on the Shanghai Stock Exchange (SSE) continues to gain momentum. As of October 26 this year,  half of the companies listed on the SSE have disclosed announcements on Corporate Value and Return Enhancement, totaling 1,104 companies with a market value exceeding RMB 30 trillion.

When developing their action plans, most SSE-listed companies have focused on developing main business, improving business quality and efficiency, and enhancing core competitiveness. In their plans, China State Construction Engineering Corporation (CSCEC) and Montage Technology Co., Ltd. emphasized their focus on main business areas. Some companies pursue overseas expansion or financial management to enhance corporate efficiencies.

Market value management has become a buzzword in the action plans of SSE-listed companies. The action plan of CSCEC indicates that the company will focus on market value management to foster a close connection between the industry and the capital markets. China Shenhua Energy Company Limited has explicitly stated its intention to establish and refine a market value management system tailored to its needs. Meanwhile, CRRC Corporation Limited has gradually established a quarterly meeting and evaluation system for market value management since its founding. According to incomplete statistics, 112 SSE-listed companies have made declarations regarding market value management as part of their Corporate Value and Return Enhancement initiative.

Increasing research and development (R&D) investment and pursuing M&As in strategic emerging industries are the primary strategies for SSE-listed companies to transition toward growing new quality productive forces. Statistics show that since the launch of the special initiative, over 200 companies listed on the SSE have pledged to accelerate the development of new quality productive forces by implementing specific actions, such as boosting R&D investment and speeding up commercialization of innovative achievements. In fact, numerous companies listed on the SSE have optimized their strategies to stimulate the development of new quality productive forces.

Excerpted from Securities Times on October 26, 2024

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The above information is provided for reference purposes only and does not constitute investment advice.