CSRC is studying and drafting the consultation draft of market value management. Long-term companies trading below net asset value should disclose their plans to increase valuation, including goals, deadlines, and specific measures.

The China Securities Regulatory Commission is soliciting public opinions on the "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management (Draft for Soliciting Opinions)", with specific requirements in Articles 8 and 9 for companies that are major index constituents and long-term net loss companies. Firstly, major index constituent companies should establish and disclose a market value management system, clarify specific responsibilities and internal assessment, and provide a special explanation on the implementation of the system at the annual performance briefing. Other listed companies may refer to this. Secondly, long-term net loss companies should disclose a valuation improvement plan, including goals, deadlines, and specific measures, and provide a special explanation on the implementation of the valuation improvement plan at the annual performance briefing. Long-term net loss companies should establish and disclose a valuation improvement plan for listed companies after review by the board of directors, including goals, deadlines, and specific measures. The content and measures should be clear, specific, and executable, avoiding statements that could easily lead to ambiguity or mislead investors. Long-term net loss companies should evaluate the implementation effects of the valuation improvement plan at least annually and make improvements as needed, disclosing them after review by the board of directors. Original text: The China Securities Regulatory Commission solicits public opinions on the "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management (Draft for Soliciting Opinions)" In order to implement the "Opinions of the State Council on Strengthening Supervision, Preventing Risks, and Promoting the High-Quality Development of the Capital Market" (State Council [2024] No. 10), further guide listed companies to focus on their own investment value, and effectively enhance investor returns, the China Securities Regulatory Commission has drafted the "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management (Draft for Soliciting Opinions)" (hereinafter referred to as the "Guidelines") and now seeks public opinions. The "Guidelines" require listed companies to enhance their quality as the basis for improving operational efficiency and profitability, and to promote the increase of investment value of listed companies. The "Guidelines" specify the responsibilities of the board of directors, directors and senior management of listed companies, controlling shareholders, and other relevant parties, and make specific requirements for the disclosure of market value management systems by major index constituent companies and the disclosure of valuation improvement plans by long-term net loss companies. At the same time, the "Guidelines" explicitly prohibit listed companies from carrying out illegal activities under the guise of market value management. All parties in the market are welcome to provide valuable opinions, and I will revise and improve further based on the feedback received before publishing the final version for implementation. This article is sourced from "China Securities Regulatory Commission", edited by GMTEight: Li Fo.