Reforms to China’s capital markets currently under consideration could significantly boost demand for stocks, lifting the share prices of the country’s seafood companies.
The Nine-Point Guideline action plan published 12 April by the State Council seeks to restore investor confidence by encouraging companies to pay higher dividends while also upping corporate governance standards for listed companies.
Described by Bloomberg as a “once-a-decade” capital market reform, the plan requires companies to detail their dividend plans before they go public and provides rewards to firms that increase their profit distribution while punishing those that don’t meet their outlined targets by disqualifying them from inclusion in premium indexes, such as the CSI 300 Index, which represents the top 300 stocks traded in China.
Additionally, the plan calls for higher fees for frequent trading and tighter supervision of lighter-traded firms….
