Seizing the opportunity of major reform and innovation to accelerate the transformation of the Shanghai Stock Exchange (SSE) to a modern exchange characterized by its openness, comprehensiveness, market-participant status, service, and responsibility.
In 2015, the good momentum of the accelerated breakthrough in reform and innovation should be maintained continuously, and the “1+6” core work should be propelled, that is, propelling the six tasks in terms of stock option, registration system reform, the board of strategic emerging industries, integration of technological forces, mechanism innovation of the bond market, and the free trade zone platform apart from ensuring safe operation.
On January 17, the Party Committee and the President’s Office of the SSE held the SSE leadership team’s learning conference to pass on the requirements of the 2015 National Securities and Futures Regulatory Conference and study the speech made by Chairman Xiao Gang of the China Securities Regulatory Commission (CSRC) at the conference. The SSE released that it would accelerate the transformation to an open and comprehensive modern exchange in 2015.
Seizing the opportunity to realize new breakthrough in development
From 2014 till now, the launch of Shanghai-Hong Kong Stock Connect and the approval of stock option have not only demonstrated the SSE’s achievements in its reform, innovation, and development but also greatly roused the confidence and fighting will of all staff of the SSE. Through study and discussion, the SSE believed that the new normal of economic development, the release of reform dividends, and the innovation in macro-economic regulation and control methods have all provided new room and impetus for the further reform, innovation, and development of the SSE market and raised an array of new topics. A general judgment is that boasting its conditions, fundamentals, and opportunities, the SSE will possibly make new breakthrough in its development strategy in 2015, but it should fully recognize the complexity and arduousness of the reform, innovation, and development work and never underestimate difficulties in the development. Under the situation, the SSE’s reform, innovation, and development must have an “anchoring force”, that is, it should carry out all work items by firmly centering on enhancing the capital market’s capacity of serving the real economy, and think and do more from the perspective of serving the real economy; furthermore, it must attach importance to “quality”, namely, it should comprehensively grasp and fully recognize the opportunities and difficulties in the reform, innovation, and development work, adopt a long-term perspective and have a down-to-earth attitude, and be brave in making breakthrough and be willing to do the “blue-collar” work.
Accelerating the transformation to a modern exchange
In response to the speech topic of Chairman Xiao Gang, “Focusing on Regulatory Transformation and Enhancing Regulatory Efficiency”, the SSE put forward that in 2015, it would take the opportunity of major reform and innovation to speed up the transformation to a modern exchange characterized by its openness, comprehensiveness, market-participant status, service, and responsibility:
First, it would build an open exchange with Shanghai-Hong Kong Stock Connect as the starting point. Taking this opportunity, the SSE would steadfastly promote opening-up, facilitate reform and development with opening-up, and keep elevating the international influence of the SSE market.
Second, it would move towards a comprehensive exchange with stock option as the symbol. The launch of stock option will, for the first time, realize the full coverage of product lines of domestic stock exchanges in the spot market and derivatives markets. The SSE would keep expanding its business lines, enrich its product lines, and integrate its value chains, so as to build itself into a comprehensive exchange.
Third, it would return to its original role as a market participant by taking the opportunity of the registration system reform. With the promotion of the registration system reform of stock issuance, the exchange’s role as a market participant would be more prominent, and its responsibility as a market participant would be clearer. Therefore, the SSE would fulfill its duties and enhance its own capacity, so as to truly bring off its functions as a market participant.
Fourth, it would construct a service-featured exchange by focusing on elevating its service capacity. According to the requirement of serving the real economy, the SSE would, in light of all tasks for the market construction, optimize the market service, elevate the service level, deepen the service, and improve investor’s experience, so as to gain acknowledgement from the market with its high-quality service.
Fifth, it would build a responsibility-oriented exchange with regulatory transformation as the impetus. The SSE would actively propel the regulatory transformation, further change the regulatory concept, mechanism, and method, and urge all market parties to fulfill their functions. Besides, it would reduce market cost, enhance market efficiency, bring off its role in safeguarding the open, fair and just market order, and protecting legitimate rights and interests of investors, especially small and medium-sized investors, thus promoting the sound development of the capital market, and better assume its responsibility in building an open, fair, and just market.
Fully promoting the “1+6” core work for 2015
In 2015, the SSE will spare no efforts to promote the “1+6” core work, that is, promoting the six tasks in stock option, registration system reform, the board of strategic emerging industries, integration of technological forces, mechanism innovation of the bond market, and the free trade zone platform apart from ensuring safe operation.
First, the SSE will erect the awareness of safe operation, so as to ensure that there will be no accident in the operation of all systems and the operation of business lines in 2015.
Second, the SSE will fully prepare for the launch of the SSE 50 ETF Option, so as to ensure its successful launch and sound operation. Besides, the SSE will actively optimize the operation mechanism for the SSE 50 ETF Option and study to develop supporting products for it.
Third, the SSE will cooperate with the CSRC to complete all preparatory tasks for the registration system reform as soon as possible.
Fourth, the SSE will boost the construction of the board of strategic emerging industries. Specifically, it will improve the scheme for the board and boost its construction, in a bid to strengthen the SSE’s capacity of serving the industry development and the real economy.
Fifth, the SSE will integrate technological forces and enhance its technological competitiveness, so as to provide stronger and more reliable technological support for the further reform and innovation work of its business lines.
Sixth, the SSE will, in accordance with the work arrangements of the CSRC, integrate resources in the bond market, drive the building of the inter-institution bond market, and build a brand-new bond market platform.
Seventh, the SSE will realize the formal operation of the free trade zone platform. Specifically, the SSE will establish an operation agency for the trading platform, formulate the operational program and the system of rules for the trading platform, select and refine key products and business lines, develop and build a technological system for the platform, and open the first batch of business lines including the cross-border private placement financing service for enterprises in the free trade zone.
The SSE Party Committee also required that the SSE should keep cementing the construction of the Party Committee, conduct the special examination with the theme of “Cementing Internal Control and External Regulation, Curbing Rule-Breaking Operation and Crimes”, and attach importance to the supervision on corruption in key fields. Besides, the SSE should further consolidate the ideological and cultural construction, and strengthen the ideological education and value guidance for all employees