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2022 was a year of profound significance in the history of both the Party and the country. The successful convening of the 20th CPC National Congress pointed out the direction for the endeavors of the Party and the country. Staying at the helm, the CPC Central Committee, with Comrade Xi Jinping at the core, has united and led the whole party and the Chinese people of all ethnic groups in accomplishing the formidable task of stabilizing the reform and development. With steady improvements in the quality of development, fruitful outcomes in sci-tech innovation, the deepening of reform and opening up on all fronts, and stability of the economy and the society, China has solidly stepped on the new journey of building a modern socialist country in all aspects.
Focusing on the big picture, SZSE has forged ahead with even greater resolve. In 2022, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, SZSE has thoroughly studied, promoted and implemented the guiding principles of the 20th CPC National Congress of the CPC, and resolutely carried out the decisions and plans of the CPC Central Committee and the State Council. Under the leadership of CSRC, SZSE has completely, accurately and comprehensively performed the new development philosophy, and have made positive progress in our work to support real economy, deepen market reforms, prevent and mitigate risks, drive high-quality development, and build a world-class exchange featured as a quality innovation capital center.
In 2022, we strengthened political guidance and further enhanced the Party’s overall leadership. We quickly set off a wave of studying, promoting and implementing the guiding principles of the 20th CPC National Congress of the CPC, steadfastly supported central inspection and rectification work to make it more regularized with long-lasting effects, further cemented the political building of the Party, and consolidated and expanded the outcomes of Party history learning and education. Moreover, we gained a deeper understanding of the decisive significance of the establishment of both Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, enhanced consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core and keep in alignment with the central Party leadership, bolstered confidence in our chosen path, our guiding theories, our political system and our culture, and upheld General Secretary Xi Jinping’s core position on the CPC Central Committee and in the Party as a whole and the Central Committee’s authority and its centralized, unified leadership. We remained committed to the path to a modern exchange with Chinese characteristics.
In 2022, we kept in mind the top priorities of the country, and were proactive to serve national strategies. We focused on supporting sci-tech innovation, and in the year of 2022, 89% of the IPO applicants came from strategic emerging industries. We helped over 1,000 tech enterprises raise funds through the issuance of intellectual property securities, set up the SZSE Technology and IP Exchange, and created an integrated service platform that connects the technology market to the capital market. We provided strong support for green development. To be specific, we released the CNI ESG Ratings Methodology to guide listed companies to implement the low-carbon and sustainable development philosophy, and further enriched green financial portfolios, with green bond issuance up 61% year on year. We contributed to rural revitalization and supported modern agricultural industries. Under the campaign, we welcomed the listing of 11 enterprises in rural revitalization and modern agriculture fields, and increased direct input and introduced funds for the counties designated for paired assistance to further consolidate the outcomes of poverty alleviation. Also, we facilitated the activation of existing assets, accelerated the regular issuance of infrastructure REITs, advanced the expansion of the REITs market by size and coverage, and worked to form a new investment mode for infrastructure construction at a faster pace.
In 2022, we pushed for a breakthrough in the reform, and endeavored to build new advantages in development. We implemented the outline for the building of SZSE towards “a quality innovation capital center and a world-class exchange” and the strategic plan of SZSE for the development in the 14th Five-Year Plan period, and put forward the strategic move of “the eight shapings”. We ensured the high-quality operation of the registration-based IPO system of the ChiNext Board, and reviewed and approved IPO applications by 208 enterprises, refinancing applications by 119 enterprises, and M&A applications by 8 enterprises. In 2022, the ChiNext Board saw 150 new listings, which brought the total number of listed companies to more than 1,200. We made concerted efforts to improve the quality of listed companies, and focused on existing assets, leading companies and problems at the source, to promote the fast growth of a number of listed companies that act as industrial benchmarks or chain leaders. We stepped up product innovation, launching ETF products related to high-end equipment, machine tool, green power and policy financial bonds, releasing the ESG index serial, the new Chinese products indexes and the CNI Social Assistance 100 Index, and rolling out the ChiNext Board ETF Option, which is the first ETF option covering only the SZSE market, and CSI 500 ETF Option and Shenzhen 100 ETF Option. We steadily scaled up opening up. To be specific, we successfully initiated the business of depository receipts under the Stock Connect Scheme, helped six SZSE-listed companies raise funds by offering GDRs in Switzerland through Shenzhen-Switzerland Stock Connect, implemented Shenzhen-Hong Kong ETF Connect and Shenzhen-Singapore ETF Connect, and launched pilot projects of the Greater Bay Area bond platform to allow overseas institutional investors to directly invest in the bond market of the exchange, so as to promote high-quality development through a higher level of opening up.
In 2022, we gave further play to the role of financing to help stabilize the overall economic situation. We kept direct financing at a sound size, and served or connected to more than 2,700 enterprises. We released 16 practical measures to support enterprise development and real economy, exempted fees for listed companies, bonds and funds, and reduced CNY 120 million of fees throughout the year. We worked unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector. To do so, we carried out the special work plan to support the reform of State-owned enterprises to give better play to their role as the ballast stone, while helping private enterprises focus on their primary business, energize their vitality, and make their access to funds easier and more affordable.
In 2022, we kept to our main responsibility and main business, and defended safety with stronger resolve. We put risk control high on the agenda, highlighted bottom-line thinking and limit thinking, strengthened risk prevention and warning, and mitigated and removed risks in time to secure the safe and stable operation of the market. We improved the regulatory rule system, worked to enhance the quality and efficiency of regulation and review, perfected the technology-based regulatory system, and seriously cracked down on behaviors against laws or regulations to protect the legitimate rights and interests of investors. We continued reducing the risks associated with listed companies, improved the mechanism for prevention and control of bond risks across the chain, and prompted the effective reduction of risks in key areas.
All these results couldn’t be achieved without the joint efforts of all market participants. So, we’d like to extend our heartfelt thanks to all the market participants, organizations concerned and people from all sectors for their care and support for the reform and development of SZSE!
Leveraging the momentum built on rich legacy, we’ll forge ahead with courage and determination. 2023 marks the first year of the implementation of the guiding principles of the 20th CPC National Congress of the CPC in all aspects. SZSE will comprehensively study, master and carry out the guiding principles of the 20th CPC National Congress of the CPC and the Central Economic Work Conference, prioritize stability while pursuing progress, apply systems thinking, and uphold integrity and innovation. Committed to gathering innovation capital and inspiring the new drivers of growth, SZSE will speed up its building towards a world-class exchange featured as a quality capital center, and support the formation of the new development pattern and high-quality development by taking on a new look and making new accomplishments.
First, we’ll remain led by Party building in various undertakings. We’ll put the political building of the Party first, mold our heart and soul with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, carry forward the great founding spirit of the Party, and keep in mind that it is imperative that all of us in the Party never forget our original aspiration and founding mission, that we always stay modest, prudent and hard-working, and that we have the courage and ability to carry on our fight. Furthermore, we’ll ensure the presence of Party building in all processes, and work to stabilize the reform and development of SZSE with an enterprising spirit and a sense of responsibility that makes us “find it hard to rest assured all the time”. We’ll drive central inspection and rectification work deeper with more practical efforts, and consolidate the outcomes of central inspection and rectification work. By promoting building and governance through inspection, we expect the central inspection and rectification to be a fresh start for SZSE to exercise full and strict governance over the Party and pursue high-quality development.
Second, we’ll maintain the aggressive momentum to deepen the reform and enlarge opening up. We’ll expedite the implementation of the outline for the building of a “quality innovation capital center and world-class exchange”, carry out the strategic move of “Eight Shapes”, and make advances based on a “three-step” approach. We’ll further drive the reform of the registration-based IPO system and consolidate the outcomes of the ChiNext Board registration reform, continue improving the systems and mechanisms for listing, M&A and refinancing, and vigorously develop bond, fund and derivative markets. Also, we’ll provide special support for technological independence, create inclusive and efficient innovation support market segments and product systems, continuously improve the market functions of the exchange, and facilitate the positive circulation among technology, industry and finance. We’ll roll out the new action plan package aimed to enhance the quality of listed companies, so as to cement the foundation for the sustainable development of the capital market. Based on the Greater Bay Area and embracing the world, we’ll steadily promote opening up at a higher level and explore new modes for cross-border connect.
Third, we’ll uphold pragmatic measures to serve real economy and support innovation. We’ll further align regulatory services with policy orientations about stabilizing growth and boosting domestic demand, leverage both stocks and bonds to increase the level of direct financing, and give further play to the role of infrastructure REITs in reactivating stock assets and expanding investment. We’ll focus on advanced manufacturing, green and low-carbon operation and digital economy, and channel social capital into key areas and weak links. We’ll build the capital chain and service chain centered around the innovation chain and industrial chain, and make good use of SZSE Technology and IP Exchange, various service platforms and all local service networks, to help state-owned enterprises sharpen competitive edges, support the growth of private enterprises, and drive the regulated and healthy development of platform enterprises.
Fourth, we’ll adhere to the fundamental rule of stabilization to prevent risks and secure operation. We’ll intensify risk monitoring and analysis, step up risk prevention and control in key areas, and enhance risk prevention and control capacity in an all-round way. We’ll advance the enaction of relevant policies and measures, and support the stability of the real estate market. By improving technology operation and maintenance, we’ll work consistently on the security, stability and continuity of system operation, uphold the safe and smooth operation of the market, and do everything possible to prevent systematic risks.
With our original aspiration still inspiring us like a torch and our mission remaining as solid as a rock, we’ll further unite around the CPC Central Committee with Comrade Xi Jinping at the core in the new year. Led by CSRC, we’ll center closely on the fundamental policy of economic work, stay tenacious like a bamboo deeply rooted in the rocks, and remain determined to move forward despite increasing dangers. We’ll shore up confidence, take real actions, move forward bravely, and make down-to-earth efforts to fulfill our duty. In doing so, we aim to break new ground for stabilizing the reform and development of SZSE, facilitate the overall pickup of the economy and contribute to a good start of the building of a modern socialist country on all fronts.
