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.
- 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.
- 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.
- 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
上市公司的價值管理
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。
市值能够管理吗？市值管理怎么变成了犯罪分子的利用工具？市值管理的出路在哪里？市值管理要怎么样才真正合规合法？我就这些问题和大家交流。
上市公司的市值与商业价值
简单的说，上市公司的市值是把公司的股价乘以它流通的总股本，就会得到市值。上市公司的核心是企业价值。公司的市值是其公司价值的财务表现，是公司在资本市场上的价格。
市值是衡量上市公司品牌和实力的载体。我们看《福布斯》和《财富》这些著名杂志对世界500强排名的主要指标，就是市值、销售额、利润和总资产。市值是决定上市公司融资成本高低的重要因素，意味着在股权融资的时候，可以用比较少的股本来获得更多的资金。市值能够反映上市公司收购和反收购的能力，高市值的上市公司在并购的时候，可以用比较少的股份向并购目标公司的股东增发股票，获得并购的标。市值是衡量股东所持财富的标志。市值是可以检验管理层的经营绩效。市值也反映公司法人的治理水平。
我们应该怎么样对待市值？首先我觉得应该纠正三种错误的认识。第一就是不作为，任由市场波动，而这是不负责任的态度，这里有两种情况，一个是不懂，不知道怎么做，很多企业虽然上市了但不知道怎么合理、合法的去进行资本运营，另一种情况是消极，怕碰红线，市值管理弄不好就是操纵股价、内幕交易，干脆就多一事不如少一事。第三种是乱作为，合谋操纵股价，是违法犯罪行为。这三种错误的认识，都认为市值管理是短期行为，这也是短视的行为。
从市值管理到价值管理
市值管理首先是公司法人治理的重要制度。他的本质是企业价值管理。市值是不能管理的，而企业价值是可以管理，可以创造的。市值管理制度的目标是什么呢？我觉得有六个指标。第一个就是要打造成长性的预期，这样投资者就能够认同、追捧你。第二公司要形成非财务溢价，公司治理要透明、没有丑闻、不做假账、不欺骗投资者、不说假话，坚持沟通创造价值，做好投资者关系管理。第三个是业绩的稳定增长，增长不是靠举债推高的，而是通过经营创造价值。第四是股票流动性增强。第五是核心竞争力提高。最终是公司的市值会随着公司利润的稳定增长而增长。
我认为，市值是不能管理的，但价值可以创造。市值管理的出路就是价值管理。
所以价值管理不是股价管理，价值管理的最终目的是让上市公司的市值与公司的价值基本相符，降低信息的不对称性。价值管理是让企业从利润中心变为价值中心。它不只注重生产、经营、运营、利润等核心指标，也关注可持续发展、企业的社会责任。市值管理的制度就是要扎扎实实做好企业，创造价值，而不是炒股价。
价值管理的要素
价值管理制度要求上市公司做好两种经营，生产经营和资本经营。上市公司要通过制定科学的发展战略，完善公司的法人治理，通过改进经营管理、创新业务模式，实实在在、可持续地创造公司的价值。同时，通过资本市场的各种金融工具，进行资本运营，来实现公司市值和内在价值的动态均衡。
企业价值是一个多元领域，公司的战略、生产经营、投资者关系、媒体管理、分析师关系、政府监管部门、交易所、上市公司协会等部门、信息披露、资本市场各种金融工具的规范运作，最终都是要让企业强身健体，有核心竞争力，才能够实现价值提升。
价值管理是一个非常复杂的系统工程，包括生产经营、资本经营，它是由多种相互关联的影响要素共同形成的系统工程。从我所在公司的实际的工作中，我认为价值管理的实践包括三个方面——价值创造、价值维护和价值提升。
- 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。
- 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。
- 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。
在股市处于平衡市的情况下，公司要梳理公司战略，分析所在行业的发展趋势，了解公司在行业中的地位、优势和劣势。制定科学超前的发展战略，努力创新合规经营，培育公司的核心竞争力，做好品牌建设和投资者关系管理。在牛市期间抓住机会进行再融资，增发股票或发行可转债券，换股并购，大宗交易减持股票等。在熊市时大股东高管增持股票、回购、并购重组，发信用债或结构性融资等资本经营。
只有树立良好的企业形象，守法合规经营，有效控制风险，加大创新商业模式，不断为公司注入新资产和新业务，扩大业务规模，充分的信息披露，有效的投资者关系，才能为企业创造长期价值。
金晓斌博士FCG FCS
海通证券原副总裁、董事会秘书
