【Boao Listening to the Tide 2026】Wu Xiaoqiu: Listed Companies Cannot "Lie Flat"

2026-04-08 05:01:52

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Ask AI · Why does Wu Xiaoqiu emphasize the key role of market constraints in governance?

China Youth Daily client, Hainan Boao, March 27 (China Youth Daily · China Youth Online reporter Zhu Caiyun, Ren Mingchao) Today, Wu Xiaoqiu, president of the National Finance Research Institute at Renmin University of China, discussed at the Boao Forum for Asia 2026 Annual Conference “Creating a Good Market Environment and Promoting Long-Term Value Investing” forum, where he said that China’s capital market has a problem—some listed companies, after going public, treat it as a one-and-done deal, “lie flat,” and “take it easy.” Their founders’ net worth can rise from tens of millions to billions in assets; as long as they do not cross regulatory red lines and do not engage in financial fraud, false information disclosure, or insider trading, it is considered fine even if they do nothing.

“This is a very bad thing. The capital market cannot work like this. Listed companies cannot just enjoy the dividends of going public and then do nothing. First, they cash out through share sales/reductions, then sell off the company shell resources and make two extra profits—that’s simply not reasonable.” Wu Xiaoqiu believes that China’s capital market listed companies need to form a reasonable governance structure. “In the past, we understood the corporate governance structure more as the relationship between the shareholders’ meeting and management. That is certainly important, but even more important are the constraints coming from the market. This is also why M&A is very important in the Chinese market.” He said.

On March 27, before the start of the Boao Forum for Asia 2026 Annual Conference “Creating a Good Market Environment and Promoting Long-Term Value Investing” forum, the participating guests took a group photo. The forum’s co-organizer is Tsinghua University PBC School of Finance. China Youth Daily · China Youth Online reporter Zhu Caiyun / photo

Source: China Youth Daily client

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