Four Chinese regulatory agencies have issued a joint statement “encouraging” listed companies to hand out more dividends, buy back their own shares and carry out more mergers and corporate restructurings to boost slumping share prices.
The statement from the finance ministry and the regulators in charge of securities, banking and state-owned assets was issued after Beijing’s decision to end its large-scale but unsuccessful programme of direct stock purchases.
State-owned funds and financial institutions have spent more than $200bn since early July trying to prop up the market but benchmark indices have still fallen 40 per cent from their peak of early June.
The government has decided to abandon these share purchases and concentrate instead on boosting the slowing real economy, “improving the quality of the equity market” and arresting people deemed to be manipulating the market.
In their statement, the four agencies pledged to step up the restructuring and mergers of listed state enterprises to make them more attractive to investors.
They said state-owned banks would be urged to provide low-interest, long-term loans to help listed companies conduct more mergers and acquisitions at home and abroad.
The statement also said the agencies would “actively encourage” listed companies to issue more cash dividends, a practice that is relatively rare among companies listed on mainland Chinese stock exchanges.
The agencies will facilitate share buybacks by listed companies through regulatory measures that, analysts said, could include tax breaks. Buybacks would take place when share prices fall below net asset value.
Such measures would be aimed at helping companies issue bonds or preferred stock so they could raise money to buy back their own shares.
Even after the falls in recent months, China’s benchmark index is up more than 40 per cent from a year ago and most analysts say Chinese shares are still overvalued.
Since most listed companies in China are still trading at rich valuations and few are trading below their net asset value, any share buybacks are likely to be a long time in the future.
Du Changchun, an analyst at Northeast Securities, said: “This is only a guiding document that says the government supports and encourages these measures. It is not a directive so it will not necessarily have an [immediate] effect. From the perspective of the listed companies, whether or not they will be able to implement it really just depends on their individual considerations.”
On Tuesday Chinese stocks continued their slide, with the benchmark Shanghai Composite Index finishing the day down 1.23 per cent, having fallen nearly 5 per cent at one point in the morning.
中國四家羈系機構結合宣布關照，“勉勵”上市公司派發更多股息，回購股票，並舉行更多並購和公司重組，以提振低迷的股價。
財務部會同證券、銀行和國有資產羈系機構宣布《關於勉勵上市公司吞並重組、現金分紅及回購股分的關照》以前，北京方面決議停止其大範圍但未能勝利的直接購股籌劃。
自7月初以來，國有基金和金融機構付出了2000多億美元試圖救市，但基準股指仍從6月初到達的峰值降低了40%。
當局決議廢棄購置股票，轉而會合精神提振賡續放緩的實體經濟，晉升本錢市場質量，同時抓捕那些被視為把持市場的人。
四家羈系機構在《關照》中許諾推動上市國有企業的吞並重組，使其對投資者更具吸引力。
它們表現，將催促國有銀行供給低息、歷久貸款，以贊助上市公司在國表裏舉行更多並購。
《關照》還表現，它們將“踴躍勉勵”上市公司派發更多現金股息，這類做法在中國要地本地上市企業中比擬少見。
這些機構將經由過程羈系辦法(剖析師們表現大概包含稅收優惠)方便上市公司回購股票。在股價跌至低於每股凈資產時，勉勵上市公司回購股票。
這些辦法將旨在贊助企業刊行債券或優先股，以便他們籌集資金回購股票。
縱然在近幾個月下跌後，中國的基準股指仍比一年前淩駕40%以上。大多半剖析師稱，中國股票仍被高估。
因為中國大多半上市公司的估值仍偏高，同時險些沒有一家上市公司的股價低於每股凈資產，是以任何股票回購都很多是迢遙將來的工作。
東北證券(Northeast Securities)剖析師杜長春表現：“這只是一個指點性文件，上面寫著當局支撐和勉勵這些辦法。它不是一個指令，以是它未必(立刻)產見效果。從上市公司的視角看，能不克不及履行現實上完整取決於它們各自的斟酌。”
周二中國股票持續跌勢，基準的上證綜指(Shanghai Composite Index)收盤跌1.23%，早盤一度下跌近5%。
市場價：HK$ 110
