Shanghai Stock Exchange Is Expected To Hit RMB20 Trillion This Year Strives To Develop Bond Market For Real Economy- The Bonds' Trading Volume Of The Shanghai Stock Exchange Is Expected To Hit RMB20 Trillion This Year

"In recent years, the SSE's bond market has made great strides but it still develops more slowly than the inter-bank market and fails to take full advantage of the SSE market in the support of the real economy, so our top priority will be given to the development of the bond market," said SSE President Zhang Yujun at the Shanghai Forum for the 2011 CCTV Chinese Economic Figures on November 24. He also predicted that the bonds' trading volume of the SSE would be very likely to hit RMB20 trillion this year.

According to Zhang, the efforts strengthened on the development of the bond market are mainly attributed to the three reasons as follows. Firstly, it is aimed to better serve the restructuring of Chinese economy and the development of the real economy. Secondly, the development of the bond market, especially that of the corporate bond market, is conducive to preventing the systematic, regional and industrial risks in the country. Thirdly, developing the bond market, especially the corporate bond market, is contributive to enriching financial products and financial investment tools in the country as well as preserving and increasing the value of the citizens' wealth. He also said, "China's capital market has yielded good results. However, it has a shortage of basic financial tools for hedging, so there is a dramatic fluctuation in the stock trading. More attention should be paid to the development of the bond market."

As for the inter-bank market and the SSE market, Zhang pointed out that in the previous year, the former made great achievements, contributing a lot to the economic growth, while the latter relatively developed at lower speed. However, the SSE's bond market has witnessed much progress in its development in recent years. Statistics shows that the bonds' trading volumes of the SSE in 2008, 2009 and 2010 as well as from January to November 2011 are RMB3 trillion, RMB4.5 trillion, RMB7.5 trillion, and RMB18 trillion, respectively. Upon prediction, the bonds' trading volumes of the SSE in the whole year of 2011 will be very likely to hit RMB20 trillion.

"At present, we are amending the new three-year plan for the development of the bonds. We believe that the bonds' trading volume will be far higher than the stock trading volume after three years", said Zhang. To attain this goal, there is much work for the SSE to do. Besides, Zhang emphasized that China's bond market is urgent to boost the development of the exchanges' bond markets for better serving the real economy and functioning as a financial tool to prevent financial risks and diversify investors. "So, the SSE takes it as the top priority to develop the bond market every year," added Zhang.

When mentioning the SSE's planning during the period of the "12th Five-year Plan", Zhang said that the mission of the SSE was to serve as a strong support to the development of the real economy, the tertiary sector and the emerging industries. The SSE is now at the stage of transformation, from relatively closed-oriented to open-oriented, targeting from the large enterprises to medium-sized and small ones, and emphasizing from stocks to bonds, with the strategy being changed from intensifying supervision to combining supervision with service. Meanwhile, the SSE is changing its focus on the services. For example, it is improving the services for the hi-tech enterprises and the real-economy enterprises, and striving to expand the financing channels and space for small and medium-sized enterprises as well as hi-tech enterprises and to provide investment products related to small and medium-sized enterprises, especially hi-tech businesses, for investors through the capital market.