China Securities Regulatory Commission, Ministry of Finance, State-owned Assets Supervision and Administration Commission of the State Council and China Banking Regulatory Commission, Circular on Encouraging Mergers and Restructurings, Distributions of Cash Dividends and Share Buybacks by Listed Companies
中国证券监督管理委员会、财政部、国务院国有资产监督管理委员会、中国银行业监督管理委员会关于鼓励上市公司兼并重组、现金分红及回购股份的通知
September 15, 2015 | BY
clpstaff &clp articles &Listed companies encouraged to distribute cash dividends
Issued: August 31 2015
Effective: as of date of promulgation
Main contents: The Circular encourages innovation in payment instruments and financing methods for mergers and restructurings by listed companies. Privately offered convertible bonds by listed companies will be launched.
Listed companies are encouraged to increase the percentage of their profit distributions accounted for by extra cash dividends, and those that satisfy extra dividend conditions are encouraged to implement interim distributions of extra dividends.
Where a listed company's stock price is less than the net asset value per share, or the price-to-earnings ratio or price-to-book ratio is less than the average level of listed companies in the same industry and has reached the preset range, the listed company may buy back its own shares at its own initiative. Listed companies are supported in using various methods, such as the offering of preference shares or bonds, to raise the funds to buy back their own shares.
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