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Shenzhen Stock Exchange (SZSE), following the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and earnestly studying the guiding principles of the 19th CPC National Congress, has developed and released the Strategic Development Planning Outline of Shenzhen Stock Exchange (2018-2010) (hereinafter referred to as “the Outline”). The move is a devoted effort to create an internationally leading formation center for innovation capital, build a world-class exchange, and better serve the overall economic and social development. The Outline contains an analysis on the challenges and opportunities SZSE confronts and proposes SZSE’s guiding principles, development objectives and key tasks for the coming three years. This is the first time that SZSE officially announces its strategic planning outline to the public and is aimed at perfecting the top-level design of the market, improving the confidence in market development and gathering the strength of all market participants to promote the stable and sound development of the SZSE multi-tiered capital market.
At the 19th National Congress, it’s indicated that the socialism with Chinese characteristics has stepped into a new era. China’s economic development has turned from high-speed growth to quality development and the reforms in quality, efficiency and power cry for a multi-tiered capital market that plays its roles. Through in-depth learning and implementation of the guiding spirit of the 19th National Congress and close connect with the practices in capital market reform and development, SZSE has considered the formulation of the Outline as an important move to put the guiding principles into practice. Accordingly, SZSE has actively aligned itself to the objectives and requirements on social and economic development and capital market construction that are set in the reports of the 19th CPC National Congress and set its foothold on the “13th Five-year Plan” to make SZSE development integrated into the national overall strategic layout. With the grand blueprint of building a modern socialist power through two steps as the benchmark, the Outline states the vision of constructing a strong capital market the matches with the modern power and is internationally competitive, sets the key year 2020 that will see the full establishment of a well-off society as the timeline, and defines SZSE’s development objectives in the next three years from 2018 to 2020.
First, to form a leading market system for innovative support and a global emerging market featuring a high percentage of national high-tech enterprises and the strong growth of SMEs. From 2018 to 2020, the ratio of national high-tech companies to the newly listed units on SZSE will take a leading position. By 2020, SZSE’s positioning of a multi-tiered market will be more explicit, all boards fully play their roles, SMEs feature outstanding growth, the product line from spot goods to derivatives more complete, the market investing and financing roles more improved, the tolerance with start-ups and innovative and hi-tech companies increased so that the SZSE market will be more attractive and become the home field of China’s new economy.
Second, to form a leading innovative capital ecosystem whose key area coverage, innovative industry chain coverage and industrial intuitional voice conform to the needs of real economy development. By 2020, the cross-border services in Southeast Asian countries will feature full coverage, the quality of V-next platform investment and professional service institution members increased, and the amount of investing and financing match-making service significantly improved. In addition, the cooperation with market participants and local innovative support systems will be enhanced and expanded and the partnerships with global markets, especially the countries along the “Belt and Road” further strengthened so as to form an international pattern where SZSE interconnects with developed markets, expands product services in developing markets, cooperates in diversified fields in frontier markets, and has say in international industrial organizations.
Third, to build a leading system for market supervision and risk control, and constantly improve investor satisfaction and major risk prevention. By 2020, SZSE would have further adapted its front-line regulation and improved risk monitoring, forecasting and emergency disposal capacities, with the coverage of investor education services expanded and satisfaction with investor education services improved, new steps taken in investor suitability management, legal remedies and information services, breakthroughs made in normalization of the delisting mechanism, achievements made in regulatory technologies and intelligence, and progress made in prevention of major risks.
Fourth, to build advanced market infrastructure and institutions, with excellent market performance, a complete set of rules and core security systems. By 2020, SZSE would have created a series of scientific and effective working institutions, and further improved the trading system; and shall keep in the front rank in terms of market scale, and system self-control, security and feasibility, ensure production safety with zero fatalities, and further automate operation and monitoring. Performance of the Shenzhen market shall stay at a higher level, and SZSE shall set an example to other exchanges globally in terms of its reliance on big data, artificial intelligence and other cutting-edge technologies, catering to the needs of regulation, services and internal management, and giving more consideration to the features of different products, the structure of investors and cross-market and cross-border requirements.
To achieve the above goals, SZSE has clarified and set their priorities for the next three years as follows, focusing on the construction of market systems, international positioning and building of comprehensive capacities.
First, SZSE shall press ahead with reforms in the ChiNext board, and improve and optimize the multi-layer market system. SZSE shall concentrate their major efforts on promoting the sound development of the multi-layer Shenzhen market, and help build a market system with distinctive features, highlighting new industries of a new economy, and optimize IPO requirements by taking account of the profit and equity features of innovative tech-firms, making the ChiNext board more inclusive.
Second, SZSE shall perfect the system of products in Shenzhen market, ensuring the balanced development of stock, bond, fund and derivative markets. SZSE shall further promote fixed income products and diversify the products in the bond market. SZSE shall conduct researches on REITs and launched relevant products for a trial run, aiming to create a REITs board with distinctive features in the Shenzhen market. SZSE shall also push through the pilot launch of ETF options for Shenzhen stocks, and build a system of derivatives based on standard products offered via the exchange. Besides, SZSE shall set up a one-stop asset allocation platform, and form a “1+2” index layout, trying to offer a system of products that are diversified, fully-functional, well-structured and controllable.
Third, SZSE shall fight the three uphill battles with full strength. According to the arrangements made at the 19th National CPC Congress to secure a decisive victory in building a moderately prosperous society in all respects, SZSE shall build a risk monitoring and forecasting platform and fight the battle to prevent major risks; SZSE shall give full play to its role in allocating resources, help energy-saving and environmentally friendly businesses grow and prosper and fight the battle to prevent pollution; SZSE, relying on its advantage of resources, shall fully comply with the Opinions on Serving the National Poverty Alleviation Strategy by Making Use of the Capital Market as issued by China Securities Regulatory Commission, fulfilling its duty to alleviate poverty by all means.
Fourth, to adhere to market-oriented development, improve market basic operation mechanism. It is necessary to provide high-quality services, vigorously support the standardized development of listed companies, improve the quality of listed companies, and strictly implement the delisting system in accordance with the law to achieve survival of the fittest and enhance market vitality. SZSE will constantly optimize the first-line supervision rules, unceasingly improve the disciplinary punishment mechanism, and effectively advance the trading behavior supervising mode that with supervising member as the center.
Fifth, to promote the standardization and productization of trading technology and improve the international level of SZSE. SZSE will construct cross-border capital service platform, deepen the cooperation between Shenzhen and Hong Kong market, explore cross-border investment and financing of enterprises and financial institutions along the “One Belt and One Road”, and comprehensively improve the international level of SZSE. Based on the practical experience of SZSE, from the perspectives of transaction systems, market surveillance, and financial data exchange, SZSE has concluded a set of standard technical systems with Chinese characteristics, strong operability, and wide applicability which will promote the commercialization and internationalization of the SZSE trading technology, and better realize the output of SZSE’s technology and capacity.
Sixth, to proactively embrace modern technologies such as big data, artificial intelligence to elevate the technological supervising capability. Great efforts will be made to reinforce the deployment, optimize the risk monitoring and forewarning platform mechanism, prevent the financial risk. SZSE will push forward the planning and construction of internet application platform of new generation and information platform of new generation, establish big data center, and materialize the technological and intelligent supervision. Relying on the platform of financial technology research development center, the SZSE will promote the innovative research and application of financial technology and upgraded the financial technology capability.
Seventh, to build a nationwide localized service network to attract benchmarking innovative companies to go public. Giving a full play to the advantage of the resources of nurturing, training, researching, products, information services, SZSE will earnest carry out strategic planning, and service matching work to provide full chain of service resolution plan for enterprises and groups. SZSE will focus on benchmarking, and focus on attracting a group of high-quality enterprises to list on the SZSE.
SZSE have always attached great importance to the communication with the market participants. The outline of the plan also fully embodies the concept of “planning with an open mind, compile with common interest”. SZSE has successively solicited and taken the opinions and suggestions from members, market institutions and related parties. In the next step, SZSE will stay true to the original mission, move forward, firmly seize the promising period of historical opportunities, proactively advance the materialization of the plan, strive to achieve high-quality development of SZSE, effectively enhance the capacity of serving the real economy, opening new chapter for the great development of economy of socialism with Chinese characteristics, and make unremitting efforts to achieve the goals and tasks set by the 19th National Congress of CPC.
