As of October 9, 2024, nearly half of the companies listed on the Shanghai Stock Exchange (SSE) have joined the "Corporate Value and Return Enhancement" initiative. With 1,085 companies having launched action plans—accounting for 47% of all SSE-listed firms—this move reflects a significant shift toward enhancing investor returns and focusing on sustainable growth. Among the participants are 738 private enterprises and 347 central and state-owned enterprises, collectively covering a market value of approximately RMB 32.69 trillion. Notably, 80% of the SSE 180 Index companies have already committed to these plans.

Key Aspects of the Action Plans

The Action Plans put forward by these companies demonstrate clear development strategies focused on improving business performance, boosting shareholder returns, and fostering better communication with investors. Companies have outlined specific initiatives, such as setting minimum dividend percentages for the next three years or committing to multiple dividends annually, including pre-dividend payouts.

This investor-oriented focus marks a departure from past practices, which emphasized growth and scale. Instead, companies are now concentrating on operational efficiency and increasing returns to shareholders. For example, Hebei Huatong Wires and Cables Group Co., Ltd.is focusing on expanding both domestic and international markets, while continuing to improve product quality and market competitiveness. The company, active in both the wire and cable as well as the oil services sectors, has built production bases in several countries, including Tanzania, Cameroon, and South Korea, and plans to enhance its industrial chain and global market presence further.

Similarly, Wuchan Zhongda Group Co., Ltd.has emphasized the importance of mergers and acquisitions (M&A) in its strategy, aiming to establish a counter-cyclical, sustainable industrial structure by leveraging strategic investments and M&A opportunities.

Focus on Market Value and Investor Relations

The concept of market value management has become a key theme in the Action Plans. SSE-listed companies are increasingly focused on strengthening their competitive positioning and communicating their investment value to the market. Inner Mongolia North Hauler Joint Stock Co., Ltd.has pledged to promote both its intrinsic and market value, while Zhejiang Chint Electrics Co., Ltd.and Shanghai Yanpu Metal Products Co., Ltd.are enhancing their investor relations management, with goals to improve communication mechanisms and foster investor confidence in their long-term strategies.

Significant Improvements in Dividends and Repurchase Plans

The implementation of the Action Plans has already resulted in significant improvements in operating performance and shareholder returns. In 2024, the number of mid-term dividend payments from SSE companies surged, with 337 companies distributing dividends—an increase of 343% year-on-year. The total dividend amount reached nearly RMB 500 billion, up 156% from the previous year.

In addition to dividends, share repurchase plans have also seen a notable rise. Since the beginning of 2024, SSE-listed firms have introduced more than 600 new repurchase plans, with a potential repurchase amount exceeding RMB 90 billion. Furthermore, more than 370 additional shareholding plans for major shareholders, directors, and senior management have been implemented, with an upper limit of about RMB 33 billion.