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2020 will go down in the Chinese history as an extremely extraordinary year. In the face of complicated and severe situations at home and abroad, the CPC Central Committee with President Xi Jinping as the core taking a panoramic view, led the people of the whole nation united in mind and heart, fought its way with painstaking efforts and achieved spectacular success to the people's satisfaction, deserving the world's attention and worthy of chronicling in history.
This year, the Shenzhen Stock Exchange (SZSE) thoroughly studied and implemented Xi Jinping's socialist ideology with Chinese characteristics in the new era and the spirit of the 19th CPC National Congress, the second, third, fourth and fifth plenary sessions of the 19th CPC Central Committee, firmly implemented the major decisions and plans of the CPC Central Committee and the State Council, actively carried forward the policy of “institutionalization, non-intervention and zero tolerance” and the requirement of “four awes and one convergence of efforts”. Under the leadership of China Securities Regulatory Commission, SZSE followed the general principle of pursuing progress while ensuring stability, went all out to promote reform, pressed ahead with market development, and laid a solid foundation for creating new opportunities and opening up new realms of development.
In 2020, the ChiNext Market reform and pilot registration-based system was successfully implemented in smooth operation and the working concepts of “open-mindedness, transparency, honesty, rigorousness” were carried forward. The pilot registration-based system in ChiNext Market is a key step in introducing reform to an existing market based on the experience of a newly-built market, perfecting a series of important fundamental rule systems, serving a handful of innovative growth and venture enterprises, effectively promoting the overall virtuous cycle of the national economy and high-quality economic development. SZSE struck a balance between prevention and control of the pandemic and support of market entities, and multiple measures have been taken to implement flexible and warm supervision and services to facilitate smooth operation of the economy. The opening-up of capital market has yielded fruitful results with the launch of Shenzhen-Hong Kong ETF Product Link, promoting the Shenzhen-Hong Kong deep integration and the integrated development of the Guangdong-Hong Kong-Macao Greater Bay Area. Positive results have been achieved in risk management and control, as the number of companies whose shares have been pledged of high proportion has significantly decreased, and bond default risks have been handled in an effective manner, providing a safe and stable environment for reform and development. As the SZSE Members’ General Assembly 2020 was successfully held, the modernization of SZSE’s corporate governance capabilities achieved a new level.
The year 2020 marked the 30th anniversary for both China’s capital market and SZSE. Over the past 30 years, SZSE has made progress in exploration, grew stronger amidst hardships and achieved development through reforms. With the consciousness of reform and innovation always on its mind, SZSE has overcome various difficulties and forged ahead with its pioneering spirit, entrepreneurial momentum and down-to-earth working style. It gave full play to its functions of capital formation and resource allocation, promoted the reform of state-owned assets and enterprises, facilitated the growth of non-state sector economy, high-tech enterprises and innovative and start-up businesses. It popularized market economy concepts such as the principles of “equality, impartiality and openness”, rule consciousness and contract spirit, stimulated the vitality of the market economy and the enthusiasm and creativity of private capital, strongly supported innovation-driven development and economic restructuring, and played an important role in deepening the reform of the joint-stock system, establishing a modern enterprise system, enhancing the modern financial system, and promoting the construction of the socialist market economy. With its listed companies increasing from five to more than 2300, majority of which are tech companies, growth and innovative companies, SZSE has evolved to a multi-tiered stock market comprising the main board, the SME board and the ChiNext Market. SZSE has become a global high-growth emerging market with its amount of fundraising in equity, turnover and the number of new listed companies among the top in the world.
We owe these achievements to the continuous efforts of pioneers, builders, and participants. On this occasion, we would like to express our highest regard to all the market participants, relevant organizations and people from all walks of life for their attention and support they have given to the development of the capital market and SZSE for a long time.
Breaking through the barriers to open up a new era, it’s time for us to set sail through the winds and waves. At present, we are standing at a historic period where the time frames of the Two Centenary Goals will converge. It is a special and crucial moment for us as the 13th Five-Year Plan was successfully achieved, the realization of a moderately prosperous society in all respects is in sight, and a new journey toward fully building a modern socialist country will begin. The CPC Central Committee’s proposals for formulating the economic and social development plan and long-term goals, adopted at the fifth plenary session of the 19th CPC Central Committee, highlights that we should uphold the central role of innovation in the modernization drive. The Central Economic Work Conference also emphasized the importance of boosting the development of the real economy by promoting innovation. We need to support, serve, and steer innovative efforts more than ever to promote high-quality development and build a new development pattern.
At the Listing Ceremony of the first group of enterprises under the ChiNext Market reform and pilot registration-based system, Vice Premier Liu He clearly requested SZSE to build itself into a high-quality innovative capital center and first-class exchange in the world. At a new starting point, SZSE will thoroughly implement the spirit of the Fifth Plenary Session of the 19th CPC Central Committee and the Central Economic Working Conference, make the most of this new stage of development, remain committed to the new development philosophy, and build the new development pattern. Bench-marking with the development targets of the 14th Five-Year Plan and the long-range objectives through 2035, SZSE strives to build a quality innovation capital center and a world-class exchange and to construct a system more adaptive to innovative capital formation including the market system, institutional system, product system, supervision and risk control system, two-way opening-up system and digital system, promoting high-quality circulation of technology, capital and real economy.
In 2021, SZSE will focus on the initial works of the 14th Five-Year Plan. First, SZSE will uphold and strengthen the Party’s leadership. SZSE will fully implement the major decisions and deployments of the CPC Central Committee and the State Council. Under the leadership of the Party Committee of CSRC, we will continue to comprehensively enhance the governance and discipline of the exchange, and continuously improve political judgment, comprehension and execution, strengthening “Four Consciousness”, Enhancing “Four Matters of Confidence” and ensuring “Two Upholds”. Second, SZSE will put support for technology and innovation and innovation-driven development of high quality in a more prominent position. We will stay committed to serving innovation and entrepreneurship, enhance mechanisms in supporting technological innovation, streamline fostering system for innovative enterprises, strengthen enterprises’ principal role in technological innovation, improve transfer efficiency of innovative capital, better serve innovation and creativity, innovative technologies, emerging industries, new forms and models of business, galvanizing endogenous growth momentum of innovation-driven development. Third, SZSE will make great efforts to balance the development of investment and financing. We will thoroughly carry out key tasks in deepening capital market reforms and comprehensive authorized reform of the pilot demonstration area of socialism with Chinese characteristics. We should consolidate the achievements of ChiNext Market reform, well prepare for the implementation of registration-based stock-issuing system across the boards, deepen SZSE market segment reform, perfect the differentiated institution arrangements to meet differentiated financing requirements of enterprises of different types and in different stages of development. Focusing on industrial chain, supply chain, and innovation chain, we will leverage product lines to enhance coordinated development of investment and financing. Fourth, SZSE will improve the quality of listed companies. With system building as the main task, SZSE will leverage registration-based system and delisting reform to perfect basic mechanisms, guard market entrances and exits, and stay committed to information disclosure and corporate governance as the two wheels in improving efficiency and effectiveness of supervision, developing market-based ecosystem of perpetuation and elimination. Fifth, SZSE will safeguard market sound operation. We will make ensuring stability as a top priority, pursue progress while ensuring stability, coordinate innovative development and prudent supervision, improve the capability for risk monitoring, alarm, and response. In this way can we better prevent and control risks in key areas, tackle low-probability risk events with full preparedness mentality for high-probability events, ensuring that no systemic risks emerge.
In the new year, SZSE will continue to maintain the spirit of pioneering, the momentum of entrepreneurial and the down-to-earth working style, strive to build a high-quality innovative capital center and first-class exchange with the courage, standard and responsibility that matches the pilot demonstration zone. SZSE will promote the reform in the new development stage to achieve greater breakthroughs and greater accomplishments, and facilitate the building of a new development pattern with a good start and a new outlook, paying tribute to the centenary of the founding of the CPC with its outstanding accomplishments.
