China unveils new policies on M&A, market value management

BEIJING -- The China Securities Regulatory Commission (CSRC) on Tuesday announced new measures aimed at guiding mergers and acquisitions (M&A) among listed companies, and soliciting public opinion on a guideline about market value management practices.

Regarding the M&A, the CSRC emphasized its commitment to actively support listed companies in pursuing M&A activities centered around strategic emerging industries and future industries.

The CSRC aims to channel more resources toward new quality productive forces. Additionally, it encourages listed companies to enhance industrial consolidation.

Regarding market value management, the CSRC's draft guideline for public consultation requires listed companies to focus their efforts on enhancing company quality, boosting operational efficiency and increasing profitability.

They are encouraged to lawfully and compliantly use M&A, equity incentives, cash dividends, investor relations management, information disclosure and share repurchases to elevate their investment value.

The guideline explicitly prohibits listed companies from engaging in illegal activities under the guise of market value management.