2023 was the first year to fully implement the spirit of the 20th CPC National Congress. The CPC Central Committee, with Comrade Xi Jinping at the core, has led the Chinese people of all ethnic groups in comprehensively deepening reform and opening up and solidly promoting high-quality development. China has taken solid steps forward in building a modern socialist country in all respects. This year, the Central Economic Work Conference and the Central Financial Work Conference were held, at which new and higher requirements for the finance industry to serve the high-quality development of the economy and society were put forward, sounding a clarion call of building a nation with a strong financial sector. The capital market continued to deepen reforms in a comprehensive manner, and the registration-based IPO system proceeded from comprehensive implementation to deepening and consolidation. The pivotal role of the capital market has been further enhanced. The Shenzhen Stock Exchange (SZSE), staying committed to its role and positioning and upholding Party building as the priority, boosted market confidence through supervision and promoted development through reform, reaching a new level in this work overall.
Over the past year, we have stayed committed to a clear-cut political stand and strengthened Party building. Upholding Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we thoroughly studied and implemented the tenets of the 20th National Congress of the CPC, the Central Economic Work Conference and the Central Financial Work Conference, upheld and strengthened the overall Party leadership over SZSE’s work, consolidated and deepened the achievements of central inspection and rectification, took solid action in carrying out theoretical study programs, and furthered the integration of Party building and business. We firmly supported the “Two Establishments” (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), and ensured the “Two Upholds” (upholding General Secretary Xi Jinping’s core position on the CPC Central Committee and in the Party as a whole, and upholding the Central Committee’s authority and its centralized, unified leadership).
During the past year, we have persisted in strict supervision and risk prevention. We thoroughly implemented the requirements of “Enlivening the capital market and shoring up investor confidence”, and refined expectation, reform, investment, financing, and trading through a holistic approach and coordinated efforts. We intensified supervision of listing review in all respects and improved the quality and effectiveness of listing review supervision. We strengthened supervision of listed companies by comprehensively evaluating and enhancing regulatory institutions and rules, cracking down on actions that violate law and regulations with 30 delistings enforced. We stepped up trading supervision with the reporting and regulatory mechanisms for program trading established and improved, and oversight on abnormal trading strengthened. We strengthened risk prevention and control in key areas such as bond defaults and delistings of listed companies to maintain the safe and stable operation of the market.
Over the past year, we have upheld reform and opening up. We implemented the comprehensive registration-based IPO system reform and carried out the special action of “Three Transparents and Two Enhancements” (transparent review, transparent supervision and transparent services; to enhance listing review quality and efficiency as well as enhance the culture of integrity) in a bid to build a transparent, clean, and high-quality registration-based IPO system. We unswervingly consolidated and developed the public sector, and unswervingly encouraged, supported and guided the development of the non-public sector. We supported state-owned listed companies in reinvigoration and quality improvement, as well as promoted private listed companies to focus on sound development of their principal business, collectively cultivating a group of listed companies that reflect the requirements of high-quality development. We completed the smooth transfer of review responsibilities for enterprise bond issuance, launched market making business for bonds, and listed the first batch of infrastructure REITs expansion projects. The “IPO+follow-on offering” of REITs on SZSE has fueled new investment of over RMB 150 billion. We also deepened investment-end reforms, as reflected by the increase of ETF fund units by 56% year on year, growth of trading volume of the options market by 120% year on year, and accelerated launch of high-quality broad-based indices such as the SZSE 50 Index. We steadily promoted high-level opening up. We enhanced the mechanisms of Shenzhen-Hong Kong Stock Connect scheme, unveiled the Shenzhen-London Stock Connect, signed MoUs with Saudi Tadawul Group, Abu Dhabi Securities Exchange, etc., and successfully launched technological cooperation projects with stock exchanges along the “Belt and Road”.
Over the past year, we have persevered in refining services for development. We provided full-cycle support for the development of a modern industrial system led by technological innovation. In the year, 124 new enterprises in the strategic emerging industry were listed. The issuance size of technological innovation bonds and intellectual property securitized products scaled new height, and the trading on SZSE Technology and IP Exchange has exceeded RMB 1 billion. We actively supported low-carbon and sustainable development by improving information disclosure rules and increasing the supply of financial products, with total issuance size of green bonds exceeding RMB 130 billion. Throughout the year, we served the real economy through direct financing of RMB 2.5 trillion, bond issuance of over RMB 2 trillion for the first time, and reduced fees exceeding RMB 1.4 billion for enterprises and other market participants, all of which helped to recovery the economy.
All these cannot be accomplished without the joint efforts of all relevant parties in the market. On this occasion, we would like to express our heartfelt gratitude to all walks of life for the long-term attention and support they have given to the reform and development of SZSE.
Looking ahead, we will continue to forge ahead despite various difficulties and challenges on our way forward. In 2024, we will thoroughly implement the spirits of the 20th CPC National Congress, the Central Economic Work Conference and the Central Financial Work Conference. Under the guidance of the China Securities Regulatory Commission (CSRC), we will follow the general principle of pursuing progress while ensuring stability, focus on the theme of high-quality development and the goal of creating a safe, rule-based, transparent, open, dynamic and resilient capital market. We will strengthen supervision, prevent risk, promote development, and accelerate the building of a world-class exchange in active support of the development of a powerful financial country.
Firstly, we will unswervingly strengthen the Party’s overall leadership over SZSE’s work. We will deeply grasp the political and people-oriented nature of SZSE’s work and carry out the Party’s leadership in all the processes of our work. We will continue to deepen full and rigorous Party self-governance, consolidate and expand the achievements of theoretical study programs as well as the regular and long-term rectification tasks in response to the central inspection. We will provide strong political guarantee for SZSE’s high-quality development with the new achievements of Party building and firmly take the path of financial development with Chinese characteristics.
Secondly, we will unswervingly and comprehensively strengthen supervision. Efforts will be made to strengthen the supervision of institutions, behaviors, functions, see-through supervision, and ongoing supervision. The concept of strict supervision will be integrated into all processes of SZSE’s supervisory work in order to demonstrate fairness and justice, maintain market order, and boost investor confidence through tough and strict supervision. We will pay close attention to key areas and critical processes, and crack down on actions that violate law and regulations such as financial frauds, fraudulent issuance and insider trading. We will deepen the coordination between self-regulation and administrative supervision to enhance the synergy of supervision.
Thirdly, we will unswervingly prevent and mitigate risks. We will reinforce risk analysis and assessment, strengthen monitoring of trading activities and capital flows, improve the risk prevention and control mechanism for equities, bonds and funds, so as to effectively maintain the stable operation of the market. We will tighten risk prevention and control in key areas, strictly prevent new risks, and properly manage existing risks. We will timely and proactively respond to market concerns and effectively stabilize market expectations. We will continue to improve the security, stability, and continuity of technical systems, and firmly hold the bottom line of safe operation.
Fourthly, we will unswervingly focus our works on five major areas (i.e., technology finance, green finance, inclusive finance, pension finance, and digital finance). We will promote in-depth implementation of the registration-based IPO system, support technology-based enterprises with break-through in key core technologies to do better and grow bigger, and step up support for high-level self-reliance and strength in science and technology. We will promote to improve the quality of listed companies, support state-owned enterprises to sharpen their core competitive edge, and bolster the development and growth of private enterprises. We will enhance market service mechanisms and carry out the fundamental project for cultivating key industrial chains. We will actively develop the bond market and promote the expansion of REITs. We will strengthen the investment development by developing ETF funds, ETF options, and characteristic indices, so as to attract more medium- and long-term funds to the market. We will enhance our digital service capabilities and accelerate the building of a digital and intelligent exchange.
Fifthly, we will unwaveringly coordinate opening up and security. We will fully leverage our geographical advantages to further deepen cooperation with Hong Kong capital markets and hep cement Hong Kong’s status as an international financial hub. We will strengthen international exchanges and cooperation, enhance the depository receipts under the Stock Connect scheme, deepen and solidify cooperation with the capital markets of the countries and regions along the “Belt and Road”, and facilitate cross-border investment and financing. We will enhance the building of our regulatory capacity under open conditions to ensure the identifiability and controllability of risks.
Implementation is the most effective way of living up to one’s responsibilities. In the new year, bearing in mind the country’s fundamental interests, SZSE will resolutely, practically and bravely carry out the decisions and arrangements of the Party Central Committee on economic and financial work to the letter. We will break new ground while upholding fundamental principles and forge ahead. Give full play to our role as a stock exchange, we will strive to support high-quality economic development with high-quality services, so as to better serve the Chinese path to modernization and make contributions to the building of a great modern socialist country across the board as well as the great cause of national rejuvenation.
