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Shanghai Stock Exchange Holds Symposium On Implementation Of Requirements At NPC, CPPCC Meetings - More Efforts Will Be Made To Give Returns To Investors And Support Reinforced Rationalization Of Listed Companies

Date 20/03/2013

On March 18, the Shanghai Stock Exchange (SSE) held a symposium on implementing the requirements put forward at the NPC and CPPCC meetings as well as propelling the SSE’s tasks, in a bid to learn and carry out the requirements put forward at the NPC and CPPCC meetings, in the government work report, and at the press conference of the new Premier Li Keqiang, boost the innovative growth and risk prevention of the capital market, and enhance the capital market’s capacity of serving the real economy. Li Mingshan, General Manager of Haitong Securities, Gu Weiguo, General Manager of Galaxy Securities, Chen Geng, General Manager of Guotai Junan Securities, Lan Rong, Board Chairman of Industrial Securities, Chu Xiaoming, SWS President & CEO, Lin Chuanhui, General Manager of GF Fund Management, Li Daobin, General Manager of BOCIM, Qiu Guogen, Board Chairman of Chongyang Investment Management, and Chen Jiwu, General Manager of V.stone Investment Management, told their thoughts after learning the requirements put forward at the NPC and CPPCC meetings with SSE President Huang Hongyuan, SSE Vice President Liu Shi’an, and other heads of the SSE. After that, the SSE’s tasks of 2013 were announced at the symposium. Also participating in the symposium were the journalists from major media such as People’s Daily, Xinhua News Agency, China Securities Journal, Shanghai Securities News, and Securities Times, as well as China Business News.

At the beginning of this year, the Party Committee and the President’s Office of the SSE arranged the symposium on announcement on the SSE’s yearly tasks, in a bid to implement the requirements put forward at the 18th National Congress of the CPC. The symposium could also be regarded as a response to the promise of holding a special symposium for the market and media after completion of the NPC and CPPCC meetings, which was made by SSE Governor Gui Minjie when he answered the question about the SSE’s tasks of 2013 at the press conference arranged for the NPC and CPPCC meetings. On March 7, the SSE’s official micro-blog (“SSE Release”) opened the column for the unanswered questions due to the time limit at the press conference arranged for the NPC and CPPCC meetings and answered these questions one by one (The press conference of SSE Governor Gui Minjie was held on March 6), which showed the SSE’s practical work style of continuously reinforcing its transparency.

All the attendees at the symposium held that the NPC and CPPCC meetings summed up China’s outstanding achievements and valuable merits in all the undertakings over the past 5 years, deployed an array of major tasks at the next stage, and provided significant guarantees for the realization of the tasks fixed at the 18th National Congress of the CPC and the promotion of the Reform and Opening-up as well as the construction of Socialist Modernization. Chairman Xi Jinping re-elaborated the “China’s Dream” characterized by national prosperity, ethnic revival, and mass happiness, and put forward an array of aspirations, expectations, promises, and responsibilities, which inspired all the masses in the country. Besides, Premier Li Keqiang announced the new government’s impressive administrative concepts of adhering to the market-oriented reform and building an enhanced version of China’s economic growth.

It was pointed out at the symposium that the government work report made this year was the shortest over the past ten years, while the report, with more specific and practical issues mentioned, further showed its highlights. Unprecedentedly, the report mentioned the reform and growth of the capital market for 4 times.

The symposium also held that in recent years, the SSE has made a lot of achievements in the following aspects by adhering to the concept of the market growth serving the real economy and boosting all the reforms and innovative measures. First, the market system has been gradually rationalized as the multi-tiered blue chip market, characterized by typical, rising and promising companies, has been built by the SSE. Second, the market’s functions have been elevated as a batch of medium and large-sized enterprises have accomplished issuance and listing in the SSE market. Besides, more and more listed companies have completed mergers, acquisitions, and reorganizations through the capital market, which have contributed to the development transformation, restructuring, quality improvement, and efficiency increase of the national economy. Third, breakthroughs have been made in the aspect of the market innovation. Great pains have been taken to innovate the trading mechanism, and fuel innovative tasks such as margin trading and securities lending, block trading, collateralized quotation repo of bonds, and agreed repurchase securities trading, which has contributed to achieving good market effects. Fourth, the market return has remarkably increased, as listed companies have been urged to build sustainable, steady, scientific, and transparent systems of dividend distribution and been guided to improve their cash dividend distribution by formulating the guidelines for cash dividend distribution and others.

The government work report also put forward high expectations and requirements for the capital market’s capacity of serving the real economy. It was mentioned in the report that efforts should be made to develop more financing channels for the real economy, lower financing costs of the real economy, propel the financial system reform, and rationalize the modern financial system conducive to the real economy’s growth. While facing the questions at the press conference about dividend distribution through the reform and the reform’s highlights at the next stage after the reinforcement of the reform, Premier Li Keqiang answered that in the financial field, we should develop the multi-tiered capital market, elevate the proportion of direct financing, and protect legal rights and interest of investors, especially those of small and medium-sized investors. Li’s answer gave more specific and pertinent requirements for the reform and growth of the capital market at the next stage, and the size, functions, and serving capacity of the capital market still have great potentials.

The attendees at the symposium said that while mentioning the continuous implementation of the stable and sound currency policy, the NPC and CPPCC meetings and the government work report put forward the concept of building a stable and sound capital market. For the first time, the government work report takes the capital market as one of the service targets of the currency policy. This has fully marked the reinforced role of the capital market in the national economy. The real economy is the fundamental of the capital market, while the high-efficient and multi-tiered capital market could provide powerful support for the real economy and better serve the real economy. All the attendees were confident for the capital market, as they reached a consensus that the new government’s 3 major tasks, namely sustainable economic growth, continuous improvement of people’s livelihood, and promotion of social fairness, have given a correct direction and created a good environment for the capital market’s growth.