[Preview of This Week's Edition] As A-share Reduction Rules Grow Increasingly Stringent, Do Protective Policies Dampen Institutional Investment Appetite? (AI Translation)
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- China's Securities Regulatory Commission (CSRC) released new rules on share buybacks and cash dividends for listed companies, hoping to boost market confidence. Despite this, the Shanghai Stock Exchange index continued to fall, with concerns that restricting IPOs and share reductions while encouraging buybacks may not effectively attract incremental capital.
- The CSRC has introduced stringent regulations on share reduction, including a recent requirement that major shareholders cannot reduce holdings through the secondary market if their companies have not paid cash dividends or have low net profits. This has led to concerns about a return to non-market practices and could discourage investment from PE/VC funds in the primary market.
- The new rules also encourage 'protective' buybacks by listed companies, aiming to support stock prices. However, there are concerns about potential insider trading during buyback periods and whether such measures truly benefit investors or mainly serve company executives and employees through stock incentive plans.
文｜财新周刊 岳跃
By Caixin Weekly's Yue Yue
继降低印花税、阶段性收紧IPO、大幅提升减持门槛后，中国证监会12月15日发布新的上市公司回购和现金分红规则，寄希望释放积极信号以提振市场信心。而此后一周，上证指数继续下探，曾盘中跌破2900点。
Following the reduction of stamp duty, the phased tightening of IPOs, and a significant increase in the threshold for share reductions, the China Securities Regulatory Commission (CSRC) released new rules on December 15 regarding share buybacks and cash dividends for listed companies, hoping to send positive signals to boost market confidence. However, in the week that followed, the Shanghai Composite Index continued to probe lower, at one point falling below 2900 points during trading.
不少人认为，股市连续下跌的原因是资金不足，因此要控制新股发行，同时限制减持，鼓励上市公司回购，再鼓励长期资金入市等，如此即可扭转市场颓势。
Many believe that the continuous decline in the stock market is due to a lack of capital. Therefore, controlling new stock issuance, limiting share reduction, encouraging listed companies to repurchase shares, and attracting long-term funds into the market are seen as measures that can reverse the market downturn.
但历史经验反复证明，IPO暂停与否与市场后续走势没有必然联系，而随意收紧正常减持，一味强调“谁都不许走”，反而会打击增量资金入市的积极性；上一轮减持收紧后，股东变现能力受限，甚至出现了大量质押“爆仓”的副作用。
However, historical experience has repeatedly shown that whether an IPO is suspended or not does not necessarily correlate with subsequent market trends. Arbitrary tightening of normal share reductions and insisting on "nobody leaves" can actually dampen the enthusiasm of incremental capital entering the market. After the last round of tightening on share reductions, shareholders' ability to realize cash was limited, leading to a significant side effect of massive pledge defaults.
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