"Trust is the bond of the world." The capital market is like a complicated chess game, and trust is the "stabilizing force" of this game.
In this ever-changing business world, the most scarce asset of listed companies is not capital or market share, but the trust of investors. Stock prices can fluctuate and assets can be reorganized, but once the market trust is lost, the future of the company will become precarious.
However, in the tide of capital operation, listed companies are often prone to "short-sightedness": over-packaging financial data, blind expansion, and crazy financing, but ignoring the most critical issue-what do investors really care about?
Today, Goheal will reveal the secret: How can listed companies win market trust in capital operation and really gain a foothold?
The three core issues that investors care about most
Investors' vision is much sharper than imagined. They are not simply confused by beautiful financial report numbers, but pay more attention to the following three key issues:
1. Where does your money come from? ——Financing rationality
Financing is the most commonly used capital operation method for listed companies, but investors do not want to see companies like a bottomless pit, constantly raising funds without clear funding plans.
For example, some companies still frantically issue additional shares when profits are declining, resulting in equity dilution, damaged investor confidence, and plummeting stock prices. On the contrary, companies that can truly win the trust of the market are often able to accurately control the pace of financing and ensure that the use of funds is in line with long-term strategic goals.
Goheal reminds: First, transparently disclose financing plans to ensure that the flow of funds is clear and controllable. Secondly, avoid frequent financing, and excessive reliance on external capital is likely to cause market doubts. Finally, tell a good "growth story" in the capital market so that investors can see a clear development path.
2. Where did your money go? ——Capital operation logic
Companies must not only be able to "circle money", but also be able to "spend money" - and spend it in an orderly manner. What investors are most worried about is that companies take large amounts of financing but invest in unrewarding businesses, which ultimately leads to increased losses and even financial crises.
Typical case: LeTV's funding "black hole"
LeTV was once in the limelight, raising tens of billions of yuan, and investors were chasing after it. However, the company frantically invested funds in multiple uncertain projects, from mobile phones to cars, to sports and finance, and wanted to get involved in almost every hot field. In the end, the capital chain broke, market trust collapsed, and investors suffered heavy losses.
Goheal reminded: First, focus on core business and avoid "pepper-sprinkling" capital operations. Second, there must be a clear logic for acquisitions and expansions to ensure that every investment can bring growth. Third, regularly disclose the use of funds, enhance transparency, and convey confidence to investors.
3. How long can your company survive? - Long-term growth ability
Short-term financial data may be "modified" to be bright and beautiful, but what investors really care about is: Can this company continue to make money in the future?
Haier's acquisition of GE Appliances: a model of winning long-term market trust
In 2016, Haier Group acquired the home appliance business of General Electric (GE) in the United States for US$5.4 billion in cash. This acquisition was not a short-term hype, but a precise global expansion. After the merger, Haier quickly integrated GE's R&D capabilities and sales network, improved operational efficiency, and ultimately achieved long-term stable growth.
Investors recognize Haier not because of its temporary financial performance, but because it has demonstrated a sound strategic thinking and long-term growth potential.
Goheal reminds: First, formulate a clear long-term development strategy to avoid focusing only on short-term performance. Second, strengthen core competitiveness to ensure that the company has the ability to grow continuously in the industry. Third, tell investors a good "long-term story" of the company to enhance market confidence.
How to build market trust in capital operations?
The capital operation of listed companies is essentially a "trust transaction". To win the long-term support of investors, companies must master the following three key strategies:
1. Transparency is the best credit endorsement
The most taboo in the capital market is information opacity. Investors are not afraid of companies encountering difficulties, but they are afraid of being deceived. False financial reports, concealing debts, and exaggerating performance will ultimately only make the market lose trust in the company.
Goheal reminds: First, ensure that the financial report data is true and credible to avoid financial fraud. Second, communicate with investors regularly and disclose key information in a timely manner. Third, establish a good corporate governance structure and improve management transparency.
2. Steady growth wins more trust than "rushing forward"
The capital market likes growth, but it prefers sustainable growth. Short-term explosive growth may bring stock price increases, but if the company lacks stable business support, the market will eventually lose confidence.
Goheal reminds: First, balance growth and risk, and do not blindly pursue high-speed expansion. Second, optimize the financial structure to ensure healthy cash flow. Third, create long-term brand value, not just short-term profits.
3. Investors are your "partners", not "cash machines"
Many listed companies treat the capital market as a cash machine, and once there is a need for funds, they reach out to investors. But truly successful companies often regard investors as long-term partners and share the dividends of corporate growth together.
Goheal reminds: First, respect the interests of investors, distribute dividends reasonably, and enhance market trust. Second, establish long-term investor relationships and reduce the impact of short-term speculative behavior. Third, you can prove the value of the company to the market through stable performance returns.
Conclusion: Market trust is the "lifeline" of listed companies
What investors care about most is not how much money you make today, but whether you can continue to make money tomorrow. If listed companies want to gain a foothold in the capital market, they cannot rely solely on short-term financial data, but must build a long-term market trust system.
So, in the current capital market environment, how do you think listed companies should win the trust of investors? **Is it through higher dividends, more transparent financial reports, or a more stable growth strategy? Welcome to leave a message in the comment area and discuss together!
[About Goheal] American Goheal M&A Group is a leading investment holding company focusing on global M&A holdings. It has deeply cultivated the three core business areas of listed company control acquisition, listed company M&A and capital operation. With its deep professional strength and rich experience, it provides enterprises with full life cycle services from M&A to reorganization to capital operation, aiming to maximize corporate value and achieve long-term benefit growth.
