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In order to boost the “Made-in-China 2025 Strategy” and implement the strategy of manufacturing power and cyber power, on December 13 and 14, 2016, the Ministry of Industry and Information Technology (MIIT) of the P.R.C. joined hands with the Shanghai Stock Exchange (SSE) to organize in Shanghai a workshop on “Guiding Enterprises in Utilizing the Capital Market” for China’s system of industry and information technology. Present at the workshop were more than 120 representatives of the industry and information technology authorities and enterprises in 31 provinces, autonomous regions and municipalities, the cities specially designated in the state plan and Xinjiang Production and Construction Corps. Attending the workshop and delivering speeches were Wu Qing, SSE Party Chief and Chairman, Wang Xinzhe, Director of the Financial Department of the MIIT, SSE President Huang Hongyuan and SSE Vice Chairman Zhang Dongke.
As a specific move to implement the memorandum of strategic cooperation between the MIIT and the SSE, the workshop was designed to help the industry and information technology authorities in different regions to understand and get familiar with the relevant policies and rules for the capital market and effectively guide the enterprises in utilizing the capital market in restructuring and listing, merging and reorganization, issuing corporate bonds and other work items, so as to improve the enterprises’ financing capacity and improve the quality, performance, transformation and upgrading of the enterprises.
At the workshop, Director Wang Xinzhe introduced the instructions and requirements made by MIIT Minister Miao Wei and MIIT Vice Minister Liu Lihua in the first place. Wang stressed that financial support is indispensable for implementing the strategy of manufacturing power and cyber power as well as promoting the effective transition between the old and the new driving forces. In accordance with the requirements of the “Made-in-China 2025” issued by the State Council and the “Guiding Opinions of the State Council on Fueling the Integrated Development of the Manufacturing Industry and the Internet”, the MIIT has worked with the Ministry of Finance, the People’s Bank of China and the China Banking Regulatory Commission to carry out the cooperation in integration of the manufacturing industry and the financial industry, and issued the relevant documents. In order to expand the fields of the cooperation, the MIIT and the SSE have made joint efforts to guide the enterprises in using the capital market in financing, strengthened the cooperation in information sharing, restructuring and listing of the enterprises, issuance of corporate bonds, issuance of asset-backed securities and the products related to stocks and bonds and other aspects, and guided the financial capital and social capital in stepping up the support for the “Made-in-China 2025 Strategy” and other key sectors, so as to provide the fund guarantee for stabilizing growth, adjusting structure and improving performance in the industries. Wang also made arrangements for specific tasks.
In his keynote speech, SSE President Huang Hongyuan briefed the workshop on the relationship between the capital market and the development of the real economy. He said that playing the role in serving the real economy, the capital market has the financing functions such as supporting the listing of the enterprises in the emerging industries and providing diversified financing instruments, as well as the functions of resource allocation such as setting up the platforms for merger, acquisition and reorganization, forming the enterprise screening mechanism and providing the risk management instruments. The capital market should support the development of industry and information technology, and facilitate the economic transformation and upgrading in China, and the exchanges should facilitate rationalized reinforcement of the enterprises in industry and information technology.
Chairman Wu Qing stressed in his speech that the industry and information technology sector, an important part of the national economy, plays a crucial role in the supply-side structural reform and is of great significance in stabilizing the growth, promoting the reform, adjusting the structure and improving the people’s livelihood. He also stressed that a large number of industrial enterprises have solved the problems of difficult and costly financing on the capital market, and the capital market has energetically promoted the effective allocation of industrial resources by various means. He said that the workshop was a specific move to implement the cooperation memorandum, and in the future the two sides will, in accordance with the strategic deployment of the CPC Central Committee and the State Council, further strengthen cooperation and support the real economy through the effective integration of the industry and the capital market, so as to jointly advance the supply-side structural reform and push China’s manufacturing industry to continuously develop and expand.
At the workshop, the experts at the SSE analyzed the situations, requirements and strategies in the listing of the enterprises, the bond financing products and policies and other issues. The representative of Chongqing Municipal Commission of Economy and Information Technology briefed on their initiatives and experience in carrying out the cooperation of the industrial and financial sectors and boosting the “Made-in-China 2025 Strategy”. Representatives of two enterprises described their experience in financing by issuing bonds. The representatives attending the workshop discussed and compared notes on guiding the enterprises’ financing on the capital market, and visited Commercial Aircraft Corporation of China Ltd., the SSE and other units.
