What are the benefits of government financial subsidies for listed companies?

1. China's listed companies are the products of corporatization and are already market-oriented enterprises. They raise funds through stock issuance, and after listing, they can also raise funds through issuing new shares and allotment. If the government continues to provide subsidies to enterprises after they become listed companies, it can only show that these enterprises do not meet the requirements of marketization. Therefore, giving high subsidies to listed companies is not conducive to the survival of the fittest in the capital market and will hinder the market-oriented reform of the capital market.

2. Listed companies in mature capital markets rarely get such high government subsidies as A shares, and their performance depends entirely on the company's operating ability, rather than unfair financial subsidies. China's long-term subsidies to listed companies are not conducive to truly reflecting the operating performance of listed companies, which will cause the deviation between stock price and value and weaken the atmosphere of bull market formation.

3. Listed companies will be suspended from listing due to losses for three consecutive years. In order to protect this listed resource, local governments forced listed companies to increase profits, so as to avoid losses for three consecutive years and maintain stock price stability, which contributed to the formation of a false bull market to some extent. It is unsustainable for listed companies to rely on government subsidies to turn losses around. Listed companies should pay attention to improving the hematopoietic capacity of their main business.