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The Shanghai Stock Exchange (SSE) organizes learning from the opening ceremony of the National People’s Congress (NPC) and the government work report given by Premier Li Keqiang.
SSE President Huang Hongyuan says, given the backdrop of the severe and complicated domestic and international situations last year, we should be proud of China’s achievements in its reform and opening-up, and its modernization.
Deploying the governmental tasks for 2014, Li’s report requires strengthening reform and making breakthroughs in some key sectors, when domestic and international situations remain complicated. As for the capital market, building a multi-tiered capital market and reforming the registration system of share issuance should be accelerated, and development of the bond market should be according to regulation. In addition, financial activities should be invigorated to serve micro and small enterprises, as well as agriculture, rural areas and farmers in the real economy. All this has pointed out the direction for reform and opening-up on the capital market in 2014.
According to Huang, in 2013, the SSE made much progress in terms of market development, innovative business, self-disciplinary regulation, and market service. However, we faced some bottleneck problems, which, in Li’s report, could be attributed to “a critical phase for structural adjustment and change of economic growth”.
As the SSE aims at becoming the main battlefield for China’s capital market, over the recent years, it has been thinking about: which kind of capital market can best support China, the 2nd world economy in transformation, also an emerging power? What’s more could the SSE market do to facilitate economic and social development and reform for China?
Actually, the SSE market is facing a key phase for its transformation, according to the goals of China’s economic and social development put forward by the 18th CPC National Congress, the 3rd Plenary Session of the 18th CPC Central Committee, and government work reports given in recent years.
On the one hand, the SSE market will provide more services for adjustments to the structure of national economy, development of strategic emerging industries, and reform and transformation of state-owned enterprises. On the other hand, in addition to attracting idle funds in the society, the SSE should try to build itself into a major channel for resource allocation of major funds in the society.
Huang adds that, as is stated in the SSE’s work plan for 2014, which has been formulated and released, with “Strengthening Reform as Its Drive” as the guideline for next work, the SSE will continue to invigorate the blue-chip market through an array of reform measures as follows:
First, the SSE will launch the board for strategic emerging industries, in a bid to support the development of strategic emerging industries, serve the adjustments to the structure of national economy, and its transformation, as well as facilitate the sustainable and stable development of China’s economy.
Second, the SSE will get prepared for work related to individual stock option products, and provide badly-needed risk management instruments for investors.
Third, the SSE will put forward new trading mechanisms oriented to the characteristics of blue chips, with an aim to revitalize the blue-chip market and attract more investors.
Fourth, the SSE will strengthen international cooperation and exchange, and attract international major long-term funds to invest in the SSE market.
Fifth, in addition to further cementing the dividend distribution system of listed companies, the SSE will foster blue chips with high yield, in a bid to build them into a major channel for domestic long-term funds to share stable economic growth.
Furthermore, the SSE will continue to explore regulatory transformation, enhance the market’s transparency, improve the market-oriented service, and put more emphasis on education and protection of investors. In a word, the SSE will unceasingly develop the depth and breadth of the SSE market, and reinforce and diversify the market’s functions, so that the market can shoulder its responsibilities in the aspect of giving full play to the decisive role of the market in resource allocation.
Finally, Huang says that after learning the government work report given by Premier Li Keqiang, the SSE is more confident in completion of the 2014 work items. With our resolution, we will speed up the reform and transformation of the SSE market.
