Dr Jin Xiaobin FCG FCS, former Vice-President and Board Secretary, Haitong Securities, shares the dos and don’ts of market value management in listed companies.

On 9 May 2021, news broke on the Internet that a listed company, ZOY Home Furnishing, manipulated stock prices and engaged in insider trading. The news caught the attention of the China Securities Regulatory Commission (CSRC). On 16 May, the CSRC filed an investigation into the company for suspected stock price manipulation. On 22 May, at a general meeting, Yi Huiman, CSRC Chairman, commented that pseudo-market value management is essentially market manipulation. The CSRC reiterated its position on this issue on 7 July, stating that manipulating stock prices in the name of market value management is harmful to the market and that it will crack down on this behaviour in the future.

Can market value really be managed? How did market value management become a tool for criminals and what is the future of market value management? In this article, the author shares his thoughts on these questions.

Listed company market value

What is the market value of a listed company? The core of it lies in corporate value. When you multiply the company’s stock price by its total outstanding equity, you get the company’s market value. The market value of a company is essentially its performance and its value in the capital market.

To put it simply, market value is what measures the strength of listed companies. When we look at Forbes and Fortune’s ranking of the world’s top 500 companies for example, the main indicators used are market value, sales, profits and total assets. Market value is an important factor in determining the level of cost of capital for listed companies. Market value also influences the ability of listed companies to engage in merger and acquisition activity and is a measurement of the wealth held by shareholders. Market value is also indicator of management’s performance and reflects the corporate governance standards of the company.

How should we look at market value? First of all, there are three false notions that should be corrected. The first is that you can get away with not managing market value. Allowing the market to fluctuate is an irresponsible attitude, whether it is because you don’t understand and don’t know how to manage market value, or because you are afraid of crossing red lines. The second mistaken notion is that you can manipulate the stock price – this is illegal and a criminal act. The third misconception is that market value management can be a short-term activity – this is very short-sighted approach.

From market value management to value management

Market value management is an important system for corporate governance. Its essence is corporate value management. Market value cannot be managed, while corporate value can be managed and created. What is the goal of market value management? I think there are six components. The first is to create growth expectations so that investors can identify and follow you. The second is that corporate governance must be transparent – you must have no scandals, no deception to investors and must adhere to creating value. The third is steady growth, not driven by debt, but by creating value through operations. The fourth is to increase stock liquidity. The fifth is the improvement of the business’ competitiveness. Lastly, you can reach your goal and the company’s market value will increase steadily. 

Market value cannot be managed unless value can be created. The future of market value management is value creation – only if you create value and make a success of your business will your stock price go up. Value management is not stock price management – its ultimate goal is to make the market value of a listed company consistent with the overall value of the company.

Value management helps to reorientate enterprises from a profit focus to a value focus, so that they do not only pay attention to core indicators of production, operation and profit, but also to sustainable development and corporate social responsibility. 

Elements of value management

Value management refers to the way listed companies create development strategies, improve corporate governance, manage the company and create innovative business models that drive company value. At the same time, capital operations are carried out through various financial instruments in the capital market to achieve a dynamic balance between the company’s market value and intrinsic value.

Corporate value is a diverse field. It involves the company’s strategy, production and operation, investor relations, media management, analyst relations, relationships with government regulatory agencies and exchanges, listed company associations and other regulatory agencies, information disclosure and so on. 

Value management is a very complex process that includes production operation and capital operation. It is a systematic project formed by a variety of interrelated influencing factors. From my experience, I believe that the practice of value management includes three aspects – value creation, value maintenance and value enhancement.

  1. Value creation relates mainly to the company’s strategy and operations. First of all, you must have forward-looking strategic plans. You also need to have an innovative business model focused on optimising the main business and continuing to meet the market’s growth expectations.
  2. Value maintenance relates mainly to the corporate governance of the company. Companies must standardise their governance practices and be transparent, and have an effective and compliant
    risk-control system, as well as zero-error information disclosure, effective crisis management and good brand building procedures.
  3. Value enhancement relates mainly to the company’s capital operations and financing. Various financial instruments can be used in different situations to increase the value of the company.

In daily situations, you must first sort out the company’s strategy, point out the direction, review the development trends of your industry, understand the company’s position, advantages and disadvantages in the industry, and formulate the company’s development strategy before entering the market. 

During the bull market, you should seize opportunities to issue additional stocks or bonds, and prepare for mergers and acquisitions. In a bear market, major shareholders and executives should increase their shares, and get ready for structured financing and other capital operations.

Only by establishing a good corporate image, operating in compliance with laws and regulations, effectively controlling risks, increasing innovative business models, injecting new assets and new businesses to the company, expanding the scale of the business, ensuring information disclosure and strengthening investor relations can we create value in the long run.

Dr Jin Xiaobin FCG FCS
former Vice-President and Board Secretary, Haitong Securities


海通证券原董事会秘书、副总裁金晓斌博士FCG FCS分享企业市值管理的未来。

2021年5月9日,私募人士叶飞因为分赃不均,在网上爆料上市公司中原家居打着市值管理的旗号操纵股价、搞内幕交易,针对市值管理的犯罪行为引发了中国证监会(中证监)关注。 5月16日,中证监会对涉嫌操纵股价的中原家居立案调查。 5月22日,在一次会员大会上,中证监主席易会满回应表示,伪市值管理本质上就是上市公司里应外合的市场操纵,为上市公司实控人牟利的行为。证监会在7月7号再次表态,表示以市值管理的名义来合谋操纵上市公司股价,是操纵市场的典型的模式之一,对正常市场的危害非常大,证监会会重点打击这种犯罪行为。














  1. 价值创造:公司的战略和经营。首先要有前瞻性的战略规划和创新的商业模式,聚焦优化主业,核心竞争力,持续给市场成长性的预期,公司的营收持续增长,公司ROE稳定增长。
  2. 价值维护:公司的法人治理。公司要规范、透明,有效合规的风控体系,零误差的信息披露,有效的危机公关,良好的品牌建设,有效的投资者关系管理,实现沟通创造价值和非财务溢价。
  3. 价值提升:公司的资本运营。抓住不同的市场周期,通过各种金融工具,定向和非定向增发,结构性的融资,股权,期权激励,股票的增持、减持,回购等金融工具,在不同的市场情况下运用合适的金融工具,达到事半功倍的效果,通过资本经营为生产经营赋能,助力公司创造更大的价值。



金晓斌博士FCG FCS