SSE Holds a Training Seminar for Central SOEs Listed on the SSE STAR Market to Better Promote the Integrated Development of Scientific and Technological Innovation and Industrial Innovation

Du Kang, Xinhua Finance

Recently, SSE held a training session on the high-quality development of central SOEs listed on the SSE STAR Market, with more than 100 participants from over 10 central SOE groups and nearly 60 central SOEs listed on the SSE STAR Market. Focusing on popular issues such as market value management and M&As, the training was given by responsible persons of the State-owned Assets Supervision and Administration Commission of the State Council, SSE experts, and representatives of listed companies. In parallel with the training, SSE held a seminar under the guidance of the State-owned Assets Supervision and Administration Commission of the State Council, which was attended by relevant heads of 9 central SOE groups and central SOEs listed on the SSE STAR Market. The participants exchanged views on the layout of central SOEs on the SSE STAR Market, industrial integration of new quality productive forces, and the consolidation of market value management to promote central SOEs to focus on scientific and technological innovation, accelerate industrial transformation, and achieve high-quality development by leveraging the SSE STAR Market.

A relevant person in charge of SSE stated that SSE would work with the State-owned Assets Supervision and Administration Commission of the State Council to serve the reform deepening and upgrading actions of SOEs. It is hoped that central SOEs will integrate industries, cultivate and expand new quality productive forces, play a leading and exemplary role in improving the quality and investment value of listed companies, accelerate scientific and technological innovation and industrial innovation, and support the development of the real economy and capital markets.

Industrial M&As: Time for Central SOEs to Accelerate the Layout of New Quality Productive Forces

Since the release of the "STAR Market Eight Measures", industrial M&As on the SSE STAR Market have been active, becoming an important carrier for central SOEs to promote industrial upgrading. For example, a subsidiary of China Telecom Corporation Limited has become a controlling shareholder of QuantumCTek Co., Ltd. to foster new industrial collaboration in the field of quantum communication. China Merchants Group has invested in Cathay Biotech Inc. to help its industrial sector deeply implement the philosophy of green development. Geovis Technology Co., Ltd. has actively carried out M&As to complement the industrial chain and strengthen the "internal + external" dual-driver development. The State-owned Assets Supervision and Administration Commission of Guangzhou Municipal Government has planned to increase its share in Farasis Energy (Gan Zhou) Co., Ltd. to lay out the power battery industry and integrate it into the local automotive industry chain. Representatives of central SOEs said, "The introduction of relevant systems by the China Securities Regulatory Commission and SSE has further enhanced the adaptability and inclusiveness of the M&A system, allowing central SOEs to expand their emerging industry layout with the help of capital market platforms."

Quality Improvement and Efficiency Enhancement: Actively Playing the Leading and Exemplary Role of Central SOEs

SSE is committed to the goal of improving the quality of listed companies, and it has formulated a new round of action plans. As the "ballast stone", central SOEs have actively taken the lead. In 2024, nearly 40 of the 60 central SOEs listed on the SSE STAR Market disclosed their action plans. This year, companies such as Geovis Technology Co., Ltd. have continued to disclose their plans. Representatives of central SOEs said that their companies have adhered to innovation, increased R&D, practiced green concepts, optimized governance, and improved quality and efficiency. In terms of investor returns, central SOEs have set a benchmark. Some companies continue to pay dividends, with a proportion of more than 20%, and they also repurchase and cancel shares. SSE has carried out special actions with good results and will continue to support central SOEs in improving quality.

Market Value Management: Sharing Value Enhancement with Investors

In 2024, the China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission of the State Council respectively issued documents related to market value management, clarifying requirements such as improving corporate quality. During the training session, relevant personnel from the State-owned Assets Supervision and Administration Commission of the State Council interpreted the documents and assessment requirements. At the seminar, representatives believed that market value management should be based on business, improve internal strength, and win market recognition while strengthening information disclosure and investor communication. Some representatives of central SOEs introduced the company's measures such as setting up teams and formulating systems, which achieved good results. The representatives also put forward suggestions for enhancing the inclusiveness of M&A valuations. SSE revealed that it would engage in research and evaluations, provide strong support for the development of central SOEs, promote the implementation of policies, and enhance the service level of the SSE STAR Market.

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