Companies with long-term net asset value per share below book value must disclose plans for valuation improvement. State-owned enterprises with net asset value per share below book value are expected to attract incremental funds.
On September 24, the China Securities Regulatory Commission publicly solicited opinions on the 'Guidelines for the Supervision of Listed Companies No. 10 - Market Cap Management (Consultation Draft)'. The guidelines require long-term companies trading below net asset value to disclose their valuation enhancement plans, including targets, deadlines, specific measures, and provide special explanations on the execution of the valuation enhancement plan during the annual performance briefing.
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