On the eve of the 18th CPC National Congress (the Party Congress for short), the Shanghai Stock Exchange (SSE) held a Party committee meeting for well-organized preparations and arrangements for study and implementation of the Report to the Party Congress (the Report for short). Since the opening of the Party Congress, the SSE has organized cadres and masses to watch the live broadcast about the Party Congress and relevant news in accordance with the unified deployment of the CPC SSE Committee. The members of the CPC SSE Committee and the President's Office attended the special meeting held by the CPC Committee of the China Securities Regulatory Commission (CSRC) for study of the Report while all the SSE Party branches and the departments held symposia, discussions and other activities for study and implementation of the Report. Around the Party Congress, the SSE organized experts and scholars from the companies in securities, fund and insurance sectors to hold a symposium in honor of the Party Congress for discussion on the development of the capital market. Besides, the SSE published three research reports in a row on the historic opportunities brought by the development of China's economy and capital market with the opening of the historic meeting, which aroused great attention and active response from the market. Apart from the importance of well studying and understanding the Report, the SSE was fully aware of the greater importance to ponder over what opportunities, expectations and directions implied in the important strategic arrangements and grand goals of the Report for the construction of the multi-tiered blue chip market when carrying out the requirements in the Report, combining the requirements in the Report with the actual conditions in the construction of the multi-tiered blue chip market, studying the Report in a thinking and problem-solving way, and unifying thoughts and actions in the construction of the multi-tiered blue chip market.
I. Important strategic arrangements in the Report bring unprecedented opportunities for the construction of the multi-tiered blue chip market.
1. The "promotion of economic, political, cultural, social and ecological progress" will bring great opportunities for the construction of the multi-tiered blue chip market.
The Report says that our overall approach for building socialism with Chinese characteristics is to promote economic, political, cultural, social and ecological progress. With the full implementation of the overall approach, a large number of listed companies taking leading positions in their sectors and featuring explosive growth in business and outstanding financial performances will come into being in the process of building a moderately prosperous society in all respects. This will not only provide continuous rich rewards for investors, but also bring huge opportunities for the development of the Chinese capital market including the SSE's multi-tiered blue chip market.
2. The path of "new industrialization, informatization, urbanization and agricultural modernization" will invigorate the multi-tiered blue chip market.
The Report points out that we will stick to the path of new industrialization, informatization, urbanization, and agricultural modernization. On one hand, the multi-tiered blue chip market is conducive to pushing forward new industrialization and informatization through merger, acquisition and reorganization, investing and financing as well as resource allocation, advancing the progress of urbanization by raising funds for infrastructure construction through issuance of corporate bonds and private placement bonds as well as asset securitization, and speeding up agricultural modernization by propelling the modern agricultural enterprises for listing and financing together with merger, acquisition and reorganization and the agricultural production. On the other hand, new industrialization, informatization, urbanization, and agricultural modernization will constantly add vitality to the construction of the multi-tiered blue chip market.
3. The strategic economic restructuring will help to expand the multi-tiered blue chip market.
The Report stresses that we will promote the strategic economic restructuring and the sound development of strategic emerging industries and advanced manufacturing industries, accelerate the transformation and upgrading of traditional industries, boost the development and expansion of the service industry especially the modern service industry, and support the growth of micro and small enterprises especially those in technology sectors. In this respect, the multi-tiered blue chip market has its unique advantages, which can promote the clustering of various superior resources in hi-tech industries, emerging competitive industries, as well as innovative and creative industries. Meanwhile, the strategic economic restructuring and the development of small and medium-sized enterprises as well as innovative enterprises can effectively expand the development space of the multi-tiered blue chip market.
4. The goal of building a moderately prosperous society in all respects will be taken as an obligation in the construction of the multi-tiered blue chip market.
The Report puts forward that we should double its 2010 GDP and per capital income for both urban and rural residents by 2020 to build a moderately prosperous society in all respects. It is predictable that with a sharp rise in per capital income, the huge demands of the masses for wealth management will keep on providing incessant long-term funds for the capital market. To provide a full-function and efficient wealth management platform is an obligation in the construction of the multi-tiered blue chip market and also an important opportunity of the SSE for the market development.
II. The grand goal in the Report poses high expectations for the SSE in the construction of the multi-tiered blue chip market.
1. To seize the important period of strategic opportunities
The Report concludes from the overall international and domestic situations that China remains in an important period of strategic opportunities for its development, in which we must lose no time in deepening reforms in key sectors with greater political courage and vision. Besides, the Report makes arrangements for deepening the reform of the economic and financial systems, and specifies requirements for improving financial regulation, promoting financial innovation, and maintaining financial stability, which gives a direction for the development of the capital market and strengthens the SSE's confidence in the construction of the multi-tiered blue chip market.
2. To lay emphasis on balanced, coordinated and sustainable development
The Report says that on the basis of making China's development much more balanced, coordinated and sustainable, we should endeavor to attain the goal of completing the building of a moderately prosperous society in all respects by 2020. The Report stresses that all the Party members should go all out in the building of a moderately prosperous society in all respects as it is extremely difficult to complete the task on schedule. The SSE's Party members and staff, always uniting as one and shouldering heavy responsibilities, will probe into the essence, rich contents and basic requirements of the Report, and strengthen the consciousness and determination for implementation of the requirements in the Report.
3. To improve services for the real economy
To implement the requirements in the Report, the SSE will make greater effort to promote the conversion of savings into investments, the strategic economic restructuring and industrial upgrading as well as the technological innovation. Moreover, the SSE will open more channels for the improvement of the people's well-being, play a distinctive role in the building of a cultural power, assume more responsibilities for safeguarding the country's economic and financial security, and make major contributions to the building of Shanghai into an international financial center. "A good opportunity may be a catalyst for a promising future." Based on the services for the real economy, the SSE will harvest a brighter and more meaningful future in its market development.
III. The essential requirements and the Scientific Outlook on Development in the Report points out a strategic direction for the future development of the SSE.
The Report stresses that the Scientific Outlook on Development is the latest achievement in the system of theories of socialism with Chinese characteristics and the powerful theoretical guidance for the Party and the country in the work. In line with the requirements in the Report, when probing into the essence and connotation of the Scientific Outlook on Development and carrying out the theory in the reform and development of the capital market in a self-conscious and all-round way, the SSE will promote the coordinated development of the stock market, the bond market, the fund market and the derivatives market by centering on the construction of the multi-tiered blue chip market.
Firstly, the SSE will unswervingly promote the construction of the multi-tiered blue chip market. As the key battleground of the Chinese capital market as well as the basis and the center of the Chinese multi-tiered capital market, the SSE's multi-tiered blue chip market has grown into an important platform of the capital market to propel reform and development of national economy as well as social harmony and progress. At present, 33 companies among 42 Chinese companies included in Fortune Global 500 have gone public on the SSE. Following the essential requirements of the Scientific Outlook on Development, the exchange will continuously adhere to the positioning of the multi-tiered blue chip market, improve listed companies' governance, transparency and quality, and enhance the value of the blue chip market.
Secondly, the SSE will boost the development of the bond market. The exchange will give continuous support for elevating the financing proportion of corporate bonds, enterprise bonds and other enterprise credit bonds, strive to make innovation in pre-issuance of treasury bonds, asset securitization and other products, enrich the products traded on the exchanged-based bond market, and propel the interflow between on-floor and over-the-counter markets.
Thirdly, the SSE will renew its efforts to develop the fund market and support the business innovation of fund companies. The exchange will develop ETF and other more domestic and overseas fund products, and enhance the capability of global product configuration. Furthermore, the exchange will support fund management companies for the product development and business innovation as well as the transition into modern wealth management organizations.
Fourthly, the SSE will develop the derivatives market in a stable way. According to the principle of high standards and strict supervision, the exchange will study and develop the derivatives based on securities spots, thus providing investors with diversified investment choices and risk management instruments.
It is the foremost task and a long-term job for the SSE to study and implement the requirements in the Report. As the main board market of the Chinese capital market, the SSE will always take the requirements in the Report as the guidance for work, further give play to its basic and supportive role in the sound and sustained development of the capital market, enhance its major influence in the national economic growth and improve international competiveness of the capital market. In addition, the SSE will not only take the study and implementation of the requirements in the Report as an important opportunity to intensify the cohesive force of the Party organizations, strengthen the team building, improve the work quality of all the departments, and demonstrate their work style, but also make the staff bear in mind the essence, key standpoint, basic requirements and fundamental methods of the Scientific Outlook on Development, with an aim of making sure the exchange reach a higher stage of development and have a new look.
FTSE Mondo Visione Exchanges Index:
Multi-Tiered Blue Chip Market Built To Serve Real Economy - Shanghai Stock Exchange's Study On The Report To The 18th CPC National Congress
Date 22/11/2012