Shanghai government urges state-listed companies to pay more attention to market values
![Shanghai government urges state-listed companies to pay more attention to market values Shanghai government urges state-listed companies to pay more attention to market values](https://cdn.i-scmp.com/sites/default/files/styles/og_image_scmp_generic/public/d8/images/canvas/2024/07/17/7791f32e-a4d1-4efe-a6f2-494773776f3e_22e46d22.jpg?itok=6ZQO7q3-&v=1721188927)
Local state-backed listed companies need to better manage their market value by expanding their core businesses, driving technological innovation and improving efficiency and profitability, He Qing, director of the Shanghai State-owned Assets Supervision and Administration Commission (SASAC), said at a conference on Tuesday.
The recent recovery in Chinese stocks denominated in yuan has fizzled out amid disappointing economic data and despite a barrage of aggressive rescue measures ranging from government stock purchases to crackdowns on trade violations. The CSI 300 index of the largest stocks has fallen more than 5 percent since its peak in May this year, with investors pocketing some gains as they wait for fresh stimulus.
The 440 companies listed in Shanghai are lagging behind the benchmark index this year. According to data provider Shanghai DZH, they have lost an average of 20 percent during this period, while the CSI 300 has only gained 1.8 percent.
The companies, which are either state-supported or controlled by private investors, have a combined market value of around 7 trillion yuan (963 billion US dollars). The three largest are the state-owned companies Bank of Communications, China Pacific Insurance and Shanghai Pudong Development Bank, according to DZH data.
Shanghai’s listed companies should better handle their investor relations and information disclosure, improve transparency and integrity, and build an image of responsibility, said He of SASAC.