In 2008, China'S Financial And Public Relations Was Just Then.

In 2007, China's capital market underwent a series of ups and downs. The ups and downs of investor confidence caused many listed companies to suffer from happiness and sadness. How can we build investor confidence in uncertain factors?

Financial relations and public relations are gradually moving towards China's capital market. The company is a high-tech enterprise located in the Guangzhou Economic Development Zone, specializing in the production of aircraft engine core components. The company successfully launched the H-share market in Hongkong in 2000.

Due to the rapid development of the company in the past few years, the continuous expansion of the overall business and the sharp rise in operating income, the company began to diversify step by step.

In 2006, when the market competition became more and more intense, Paltrow began to feel the pressure of competition. After many heated discussions, the board of directors of the company thought that the company's future development should stick to its own business, focus on engine parts manufacturing, and continue to make the core competitive advantage bigger and stronger, which would be more conducive to the long-term development of the company.

Based on this thinking, the board decided to split Petro and divest the non core business within the framework of the current operation.

It is a great event for a listed company to split the company's business. How will shareholders and investors view this event?

Will they be the same as the board of directors and regard this separation as the starting point for Petro to gain more competitiveness and get more opportunities for development?

Or is it the opposite?

From a company's perspective, how can we better convince these stakeholders?

Can a company's announcement effectively impress them?

The ups and down of the capital market often make people unable to grasp. Any misrepresentation or misunderstanding of strategy at the enterprise level can cause huge waves. More powerful enterprises can not resist the catastrophic consequences of the collapse of investor confidence.

Countless enterprises have already suffered huge losses in this respect.

Months before the announcement, Petro executives were nervous and anxious.

After careful consideration, Mr Paltrow's board of directors decided to abandon the practice of announcing a decision in a single paper, and invited a professional financial and public relations company to conduct a comprehensive and effective public relations among stakeholders and use communication strategies to maximize the positive view of the capital market on business splitting.

Financial and public relations: communication creates value, like other public relations communication, the core point of financial public relations is also to clarify the object of communication between enterprises. For Petro company, the most concerned about the change of company's business structure is the company's largest institutional investor Pei Hui fund. If Pei Hui fund does not favor this split up and throws large quantities of stocks, it will probably lead to other investors' chain reaction, which will make Petro's stock price oscillate violently and seriously affect the future development of the company.

Therefore, if persuading Pei Hui fund to approve such a split, it is the first step to conduct financial and public relations.

After careful consideration, the financial and public relations company has refined three solid communication points for the business: first, the core competitiveness is stronger than the simple pursuit of the scale of the enterprise, and two of the sustainable development. The core business will greatly enhance the profit margin of the company, and achieve an effective scale effect and brand value spillover effect. The market prospect of the aircraft engine parts market is huge. The market leaders will get huge profits return. At the three point communication point, Paltrow company will prepare the announcement contents, press releases, and prepare all the information to meet with the senior managers of the Pei Hui fund company.

As the preparatory process is in place, Paltrow and Pei Hui fund are very active and effective. With the help of public relations companies, the board of directors not only let the Pei Hui fund look forward to the business spin off, but also confirm that the development of the company will enter a new period of development. Paltrow is not only the creator of the business profit but also the leader of the industry. After meeting the fund manager, he immediately decided to add 10 million of the investment funds to help Paltrow make business adjustment as soon as possible.

The public relations company wrote the meeting's content in a press release and prompted a joint statement by Pei Hui foundation and Petro company to make a more positive and effective explanation of the plan.

When the joint statement and press release became a news report, investors showed great interest in Petro's business splitting plan. From the support of Pei Hui fund, they believed that the business spin off would enable Petro to get a leap and become a strong leader in the industry, so many investors increased investment to absorb Petro's stock.

In just two weeks, the value of parrot's stock rose by more than 50% due to the promising capital market.

The good handling of investor relations has not only made Paltrow through the crisis that may cause investors' confidence to retreat, but also made the company's development more valued and become a star share in the capital market.

Communication has created great value.

Financial and public relations, China's listed companies need to make up for a lesson. If the product PR is to improve the visibility of products and make consumers easier and easier to make products, financial and public relations will enable investors to gain confidence in the future development of enterprises based on a better understanding of their intentions.

The so-called "financial and public relations" refers to a series of public relations promotion activities such as design, exhibition, promotion, interpretation and communication initiated by enterprises (mainly listed companies) in order to seek and maintain their specific image and value orientation in the minds of investors in capital markets and those who have important influence on Investors, thereby enhancing investors' confidence in holding shares and matching their stock prices with the true value of listed companies.

With the growing maturity of China's capital market, the concept of "financial and public relations" is being accepted by more and more Chinese enterprises, especially those listed on GEM.

Chinese enterprises realize that winning the recognition of capital market and winning the recognition of the consumer market are very different. The latter only needs to make clear the difference of the product's performance, characteristics and values, while the former must have a better communication skill and a more comprehensive PR plan. Any mistakes and misunderstandings of the information will bring irreparable losses to the enterprise.

On the other hand, on the other hand, many of the listed companies in China are familiar with ordinary investors or areas that can be easily understood, such as non-ferrous metals, professional software and heavy machinery. If enterprises lack effective communication strategies, it is difficult for investors to understand the value of enterprises clearly.

Therefore, how to communicate effectively with investors and highlight the brand value of enterprises is what Chinese enterprises need, but also many Chinese listed companies lack.

Of course, there are exceptions, such as Sany.

As the first enterprise in China to implement the pilot reform of split share structure, Sany is deeply aware of the importance of financial and public relations. Sany's managers should not only let ordinary investors understand and support the split share plan, but also make the capital market optimistic about the long-term value of Sany's failure.

As early as 2001, Sany began to carry out brand publicity in mass media, such as CCTV, Phoenix TV and popular mainstream newspapers, promoting the concept and strength of enterprises. Under the effective PR communication strategy, Sany has a very high social reputation. Powerful brands and image publicity have made good bedding for the subsequent listing of enterprises.

After the listing in July 2003, Sany has been thinking about the reform of the whole circulation, and put forward the trial of the split share structure reform, which has been recognized by the SFC.

However, in the process of stock reform, it is not enough to have the approval of regulators only. The scheme also needs approval from more than 60% of the circulation shareholders. It is precisely based on the persuasive purpose of the circulation shareholders that Sany has carried out a well planned financial and public relations: with the assistance of financial and public relations companies, large shareholders frequently visit key stock holders and publish them through public communication.

In addition, a series of targeted network roadshows and media have been organized to communicate with the wider circulation shareholders in the form of news dissemination, telephone, mail and so on.

In addition, on the basis of communication, they revised the plan and carried out a new round of communication. Through repeated public relations and communication, they finally succeeded in obtaining the trust of most minority shareholders.

The successful financial and public relations has won wide reputation for Sany, and more importantly, it has made the enterprise become the image representative of the successful reform of Chinese listed companies, and has won the high recognition of the capital market and investors.

2008, the golden year of China's financial and public relations, 2008 is a historic year in China.

The Olympic Games were held in China for the first time, China's reform and opening up 30th anniversary, and the new phase of economic development.

Such a great year is only once every ten years.

After going through the ups and downs in 2007, the Chinese capital market will enter a more rational period of development in 2008. This is both an opportunity and a challenge for the listed companies: how to establish a systematic and effective communication system, strengthen effective communication between the company and investors, enhance mutual trust and support between the company and investors, and establish a good market image for the company, which can play a decisive role in establishing investor confidence in the enterprise and seeking investors' long-term support for the enterprise.

More and more listed companies also recognize that the role of excellent financial and public relations in enhancing corporate reputation and brand value has begun to communicate with stakeholders in various ways, and have begun to take steps in the way of financial and public relations.

The development level of China's public relations industry is still improving. Especially in the field of financial and public relations, it is still blank. There are few local public relations companies that can provide professional financial and public relations services. This is neither good for the capital market nor the operation of financial and public relations. However, with the growth of the demand for financial and public relations, the Chinese public relations industry will also usher in a new round of pformation and business development. In 2008, it will become a high-speed development period of financial and public relations in the Chinese market.