Core Viewpoint - The capital market operates in cycles, with both bull and bear markets, and companies can strategically manage their market value by adapting to these cycles [2][3] Bull Market Strategies - In a bull market, companies can take advantage of overvalued stock prices to raise capital at a lower cost through methods such as: - Issuing new shares or targeted placements to expand capital and stabilize high stock prices [4] - Using stock-for-stock mergers to acquire non-listed companies, leveraging high valuations [4] - Injecting quality assets through private placements [5] - Reducing shareholdings by major shareholders to help correct overvalued stock prices [6] - Utilizing hedging tools like stock index futures to mitigate systemic risks [6] Bear Market Strategies - In a bear market, companies should focus on "buying" strategies to enhance competitiveness and restore investor confidence, including: - Stock buybacks to stabilize and increase stock prices [7] - Major shareholders or management committing to not sell shares to maintain investor confidence [7] - Engaging in mergers and acquisitions to capitalize on low valuations [8] - Using stock index futures to hedge against risks by taking long positions [8] - Opportunistic hostile takeovers by funds targeting undervalued companies [8] - Acquiring "shell" companies to facilitate easier IPOs during market downturns [8] - Implementing equity incentives or employee stock ownership plans to align interests [9] Value Management Techniques - Value management can be categorized into short-term and long-term goals: - Short-term strategies focus on stabilizing market value and reducing volatility, including various financing methods and hedging techniques [10] - Long-term strategies aim for stable growth in market value and shareholder returns, primarily through investments and restructuring [11] - As the Chinese capital market matures, the range of financial innovation products will expand, allowing companies to apply these strategies based on market conditions and corporate capital strategies [11]