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The SSE will contribute to increasing returns to investors and supporting reinforced rationalization of listed companies by launching a series of service-oriented activities for innovative practices.
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, with a view to implementing the requirements put forward at the 18th National Congress of the CPC as well as the NPC and CPPCC meetings, and building the capital market which supports reinforced rationalization of listed companies, brings good returns to investors, and serves the real economy. The SSE’s major tasks of 2013 were announced at the symposium as well. SSE President Huang Hongyuan said that the SSE would spare no efforts to propel “1+5”major tasks in 2013.
“1+5” major tasks will be propelled in 2013.
Specifically, “1” means safe operation. The government work report required to “guard the bottom line of zero systematic and regional financial crises” and “guide the stable and sound operation of financial institutions and strengthen the regulation on partial and regional risks as well as risks in off-balance sheet businesses of financial institutions for enhancing the financial industry’s sustainability of supporting the economic growth.” It is the exchange’s fundamental task to ensure the safe operation of the exchange market and prevent from systematic risks.
On the other hand, “5” refers to the five aspects including the new products and businesses of the multi-tiered blue chip market, the bond market, and funds, as well as the reinforcement of the SSE’s internationalization and the building of the institutional-investor-oriented service platform.
First, the SSE will continue to propel the construction for the multiple-level blue chip market, and support the issuance and listing of large-sized backbone enterprises, leading companies from segment markets, and quality companies from the technological innovation industry, the culture and creativity industries, and other emerging industries, as well as the advanced manufacturing industry and the modern services industry. Meanwhile, it will support reinforced rationalization of listed companies through simplifying procedures for merger, acquisition, and reorganization, as well as refinancing. The SSE will also improve information disclosure and fully implement the direct channel for information disclosure by adopting the basic principle of looser control and tighter regulation. In addition, listed companies will be urged and guided to attach great importance to returns to investors, and build a sustainable, stable and predictable mechanism for dividend distribution, so that a comparatively reasonable and sound evaluation mechanism could be formed on the market. And the SSE will propel to build the new mechanism characterized with business performance promotion meetings and briefings for significant issues, and it will explore to build a road show center for listed companies on the SSE’s trading floor, thus improving the communication and exchange with investors. Besides, the SSE will improve the level and effect of its service for investors, and boost the interaction between listed companies and investors through the “SSE Interaction Platform for Listed Companies and Investors”, “Monthly Q&A”, “Face-to-face Talks”, as well as online trainings and testing services.
Second, the SSE will accelerate the reform and innovative development of the bond market by modifying rules for bonds, integrating trade systems, and rationalizing the systems for rating, evaluation, credit enhancement, issuance and transaction, as well as market makers. Moreover, it will vigorously develop corporate bonds, make breakthroughs in the pre-issuance of treasury bonds and the development of financial institutions’ bonds, steadily promote the growth of SMEs private placement bonds, and develop new products including one-on-one repurchase of bonds.
Third, the SSE will boost the rapid growth of funds and other new products and businesses, and facilitate the soaring development of new businesses including quotation repo, margin trading and securities lending, and collateralized repo of stocks, with an aim to build a layout of ETF products linked with stocks, bonds, gold, foreign exchanges, commodities, and currencies. Besides, it will optimize the innovation mechanism, realize quotation repo on a regular basis and pilot securities lending of refinancing, and launch collateralized repo of stocks, ETF repo, and others, according to the basic requirements of simplifying procedures and stabilizing expectations. Finally, the SSE will complete the business scheme, rule system, and technological preparation for individual stock options, as well as expand the scope of the simulated trading.
Fourth, the SSE will probe into a variety of ways to improve its internationalization by building diversified, convenient, and low-cost service channels for investors worldwide, as well as launching an array of activities for international exchanges and market promotion. In addition, it will speed up the development for cross-boarder ETF products, and continuously expand the scope for the cooperation with overseas index institutions, with an aim of developing the products covering all the major overseas capital markets.
Fifth, the SSE will accelerate the building of the institutional-investor-oriented service platform. This year, the SSE will take the lead in establishing an institutional-investor-oriented service platform, with an aim of providing more products, easier trading ways, and a more convenient service platform for them. It is learnt that the institutional-investor-oriented service platform will perform an array of basic functions including unified internet access, registration, information release, negotiation on retrieval, products transfer, online payment, products rating, which will be conducive to breaking down the barriers among the platforms of financial products, supporting the growth of institutional investors, lowering investors’ costs for platform access and trading, and providing “one-stop” comprehensive services for institutional investors.
