State-owned shares transfer 10% substantial institutional innovation to enrich Social Security Fund and stabilize market

The State Council recently decided that the implementation of the state-owned shares in the domestic securities market, that is, the new and old split share reform, where the initial public offering of shares in the domestic securities market and listed in the state-owned shares of the stock company, unless otherwise provided by the State Council, shall be in accordance with the actual issue of the initial public　　Part of the state-owned shares will be transferred by the National Social Security Fund Board, the National Social Security Fund Council to the transfer of shares of the original state shareholders of the lock-up period obligations. Comment on: This measure, not only can enrich the social security funds, at the same time also help to reduce the state-owned shares of the pressure on the market, to stabilize the securities market will have a positive effect, is a major institutional innovation. First, policy innovation: 7 years ago, the "reduction of state-owned shares to raise Social Security fund management interim measures" after the implementation, because the impact of the stock market was forced to suspend. 7 years later, from "reduce" to "transfer", reflecting the policy-led system innovation. Second, the state-owned shares from the reduction to the holding, for the National Social Security Fund, this is the social security funds to raise a system of a major innovation. Thirdly, corporate governance innovation: After the implementation of State-owned stock transfer, Social Security Fund, although its shareholding is not large, but still a major shareholder of state-owned holding company, will be conducive to strengthening the governance of listed companies. Moreover, to the Social Security Fund's investment idea, its income source mainly is to reduce the shares the income and the stock dividend profit, especially obtains the dividend income is its first choice. Therefore, the Social Security Fund obtains the state-owned equity, will help to encourage the listed company to repay the investor in the form of dividend more.