China’s top securities regulator outlined a plan on Friday to strengthen corporate governance, boost investor returns and cultivate globally competitive companies, as Beijing seeks to reinforce confidence in the country’s capital markets.
The regulator would refine incentive and restraint mechanisms for listed companies, encourage stronger governance standards and promote dividend payouts and share buy-backs to improve investor returns, Wu said.
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Authorities would also work to invigorate China’s mergers-and-acquisitions market to enable more efficient allocation of resources and help nurture “more world-class enterprises”, he added.
Wu said regulators had already seen signs of recovery in market sentiment.
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“The upward momentum on China’s stock market is consolidating,” he said. “That tells us that risk prevention and tighter supervision are the right direction.”
