The Shanghai Stock Exchange (SSE) recently held the 1st session of market innovation forum of visiting researchers of the Innovation Lab. Attendants were experts from securities companies and fund management companies and the relevant SSE officials.
Established in March last year, the SSE Innovation Lab's main purpose is to strengthen quantitative analysis so as to provide scientific policy-making basis for SSE's product, business and system innovations. With a number of research results achieved since its establishment, it has had some impact on the market. To promote the innovation and development of China's securities market, the SSE engages 16 experts of the industry as visiting researchers of the Innovation Lab to study the market's hot issues and the institutions' research results. Moreover, they will hold market innovation forums on an irregular basis to discuss the important issues on market innovation and development.
SSE Vice President Liu Xiaodong said at the meeting that the SSE, always attaching great importance to market innovation, had introduced several popular innovative products such as ETF and warrants for equity division reform. Now, it is actively studying the covered warrants of large-cap stocks, which are likely to be launched in the near future. Liu hoped that the visiting researchers could stand in a neutral position to make suggestions and researches for the SSE and the entire market's innovation and development.
Experts from the SSE Derivatives Market Development Department and the Innovation Lab introduced the SSE's future products' development plan, the preparations for covered warrants and REITS, the Innovation Lab's work in 2006 and its work plan in 2007. They also discussed the market's hot issues, including the relationship between exchange innovation and securities industry innovation, the influencing factors of warrant's premium trading and the market maker system of China' securities market.
SSE Research Center Director Hu Ruyin stressed in the concluding speech that the innovation, as the source and power for securities market's development, is a must to stimulate the market vitality. Based on the principles of professionalization and marketization, efforts should be made to appropriately deal with the relationship between regulation and market innovation for the promotion of market operation efficiency and securities market's development.
