"There is no specific timetable for the launch of the International Board, but the regulations on issuance, trading, listing and settlement for the Board are being specified. And treasury bonds are expected to see on the issuance list of the exchange," said Governor Geng Liang of the Shanghai Stock Exchange.
"The SSE will attract and encourage more enterprises to go public during the '12th Five-year Plan' period. In the next 5 years, 50 additional companies will be listed on the Shanghai market on an annual basis. Meanwhile, vigorous efforts will be made to develop the bonds market, with an aim to issue some treasury bonds through the exchange," said Geng Liang, SSE Governor and Member of the Chinese People's Political Consultative Conference, in an interview with the Shanghai Securities News yesterday.
As to the preparatory work for the International Board, Geng said the regulations on issuance, trading, listing and settlement, with the drafts worked out already, were being refined. The technology for the exchange's operation is almost in place. The regulatory issues, especially the rules on and supervision over information disclosure, remain to be solved after careful study. Currently, there is no schedule for the launch of the Board or list of the companies to be listed in the first batch.
When asked "what will the exchange do to uplift the proportion of direct financing in a substantial way", Geng said that as it is one of the major responsibilities for the capital market and the exchange to elevate the direct financing proportion, the SSE would promote and implement the work in terms of stock financing and bonds financing.
According to Geng, in terms of stock financing, the SSE will further attract and bolster companies to go public. Preliminary estimate shows that the SSE will welcome 50 new listed companies each year in half a decade. During the "11th Five-year Plan" period, the peak time for companies to list on the SSE is year 2010, when a total of 26 companies debuted on the exchange.
As for bonds financing, Geng said that the SEE would launch three measures. First, favorable conditions will be created to invite listed commercial banks to return to the exchange's bonds market. "So far, the problem has been basically solved, as the 16 commercial banks already going public will gradually come back to the market." Second, the exchange is vigorously coordinating with relevant departments, with a plan to issue part of the treasury bonds to investors directly through the exchange market. Third, the issuance amount of corporate bonds will be scaled up in the "12th Five-year Plan" period, given the 100 newly-listed bonds and RMB135 billion raised funds on the exchange's bonds market last year.
Geng also said that in addition to market expansion, endeavors should also be made to propel listed companies to do a better job in dividend distribution. "Both the exchange and regulatory bodies should take measures to spark and urge listed companies to pay dividends."
FTSE Mondo Visione Exchanges Index:
50 Companies Per Year To List On Shanghai Stock Exchange In Next 5 Years
Date 10/03/2011