Uncovering the Essence of "Tenfold Refining" and Seizing High-Quality Development Opportunities
Sun Yong
As a hot topic in corporate governance, how A-share listed companies can enhance their governance capabilities to achieve high-quality development is a crucial question. With the Chinese economy's main theme being high-quality development and the key words of the times, as the protagonist on the economic stage, 5400+ A-share listed companies have to raise their governance levels to become an indispensable part.
Song Zhiping, a renowned domestic entrepreneur management expert, has written a new book titled "Hard Truth - Tenfold Refining for High-Quality Development of Listed Companies". This valuable reference book provides insights into how listed companies can improve their governance and achieve high-quality development.
Song Zhiping has been working on the frontline for many years, leading two state-owned enterprises to achieve remarkable transformations. After leaving his position as CEO, he became the chairman of the China Listed Companies Association, conducting in-depth research into nearly 500 listed companies and gaining profound insights into how to improve their quality.
In his book, Song Zhiping systematically outlines the tenfold refining for high-quality development of listed companies, including "governance norms", "standing out main business", "innovation leadership", "product excellence", "brand reputation", "returns to shareholders", "merger and reorganization", "dual circulation market", "risk prevention", and "social responsibility". These tenfold refining succinctly summarize the core points of high-quality development for listed companies, both a summary of corporate practice at home and abroad and an extraction of the essence of modern enterprise management.
One of the highlights is his insights on branding, where he emphasizes that "the CEO is the best brand ambassador". This not only refers to the visible brand image but also values-driven fusion on a deeper level, which embodies the embodiment of entrepreneurial spirit in corporate bodies.
He further points out that Chinese enterprises are facing unprecedented opportunities and challenges in branding. The CEO's role has evolved from simply being an economic organization leader to a creator of social value, pioneer of industrial transformation, and disseminator of cultural spirit.
Regarding share price management, Song Zhiping believes that it should become an important strategic move for listed companies. By effectively communicating the company's value and growth potential to the market through share price management, listed companies can attract more investors and create greater returns for shareholders. Strategic coordination, embracing innovation, equity incentives, and share price assessment are the four key dimensions of effective share price management.
He pays special attention to the issue of share price management for state-owned listed companies. In his view, the share prices and values of state-owned listed companies are currently being underestimated in the capital market. To elevate the share price management levels of state-owned listed companies, it is crucial to combine their value creation with the laws of the capital market.
Regarding CEO succession, Song Zhiping believes that doing business successfully lies in knowing and nurturing people; one should prioritize people and then things. First-class leaders must have a first-class character, with both moral integrity and competence as their foundation. He has conducted extensive research and found that many companies face the problem of how to solve the succession issue, find a good successor, and make decisions.
He suggests that private enterprise CEOs can hand over the reins to children who have genuine management abilities; if there are no suitable children, they should choose professional managers. Regardless of whether it is a family-run company or a non-family business, CEO succession requires advance planning. The founder or CEO should determine the succession goals and direction based on the company's strategic objectives, core values, and development needs. Establishing a scientific succession mechanism is essential.
The book's four major features are concise reasoning, refined language, good readability, and rich case studies with both theoretical depth and practical reference value. Take some time to carefully read it, not only to grasp the way listed companies achieve high-quality development but also to revisit the arduous journey of Chinese entrepreneurs over the past 40+ years.
This column article represents the author's personal views.