The Chinese government encouraged listed firms to merge, offer cash dividends, and buy back shares. That's according to a joint statement issued on Monday by four government agencies including the Finance Ministry and China's top securities regulator.
The statement also revealed supporting measures to finance the restructuring of state owned firms and ease administrative procedures. Analysts say the move will help protect investors' interests, and stabilize liquidity for the stock markets. They also say mergers of state owned firms slowed this year, due to unnecessary approvals. The statement said banks, brokerages, asset management companies and investment funds, should take part in and provide funding and credit to SOEs for mergers and acquisitions, including cross-border deals. Regulators added that decision making for these moves would be decentralised.