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The 12th China (Shenzhen) Derivatives Forum, co-sponsored by China Futures Association and Shenzhen Municipal Peoples Government and co-organized by Shenzhen Stock Exchange (SZSE), was held at Shenzhen Wuzhou Guesthouse from December 2nd to December 4th, 2016. General Manager Wang Jianjun attended the forum and delivered a speech.
He said SZSE, being an important financial infrastructure of China, has actively served the supply-side reform and economic transformation and upgrade mainly from five aspects. First, SZSE has played its role of resources allocation to boost economic structure adjustment. The motive energy of transformation has been newly included in the IPO of new companies. From January to November 2016, 101 companies of the Shenzhen market made their IPOs and financed 39.006-billion yuan. Restructuring and re-financing have facilitated the stock optimization configuration. Also from January to November 2016, 433 companies completed their restructuring and re-financing, raising 59.3581-billion-yuan funds. Among them, the main board has intensified the function of capital market to serve SOE reform, the SME board has consolidated the aggregation effect and the ChiNext board has constantly expanded its breadth and depth of service to entrepreneurial innovation. Fixed-income instruments have facilitated enterprise financing and optimized the debt structure of companies. As of December 2nd, there were 2,734 listed fixed-income instruments whose custody face value amounted to 1.21 trillion yuan, a double of that at the end of 2015. Efforts of service for people's livelihood, green and inclusive finance and other key fields have been improved, which drove innovation in corporate bond products. Second, SZSE has served and supported innovation and entrepreneurship, underpinning new forces for development. Business startups and innovations by the general public have become strategic tasks for propelling structural transformation and upgrade under the economic new normal. Serving and supporting innovation and entrepreneurship are the mission and responsibilities of SZSE. Without the support of capital market, strong forces would not be available for innovation and entrepreneurship; and the absence of support for innovation and entrepreneurship would make capital market lose its vigor and vitality. Among the over 1,800 companies listed at SZSE, 70% of them are high-tech enterprises and the ChiNext board-listed high-tech entities account for 93% of the 70%. SZSE has become a gathering place of China's new economy and is the ideal listing place of technical and innovative enterprises. In the future, we will continue the efforts to expand and deepen our service to effectively transform more social resources into innovative capital and turn more technologies and creative ideas into better products and service, therefore, all-roundly serving the upgrade and transformation of the real economy and the growth of innovative enterprises. Third, SZSE has intensified efforts in market promotion and cultivation to improve the level of market cultivation service. It has formed an all-round market service system that includes services of key enterprises, regional promotion, product promotion and professional training. Fourth, SZSE has earnestly implemented strict and comprehensive regulation according to law and fully reinforced the front-line supervision over listed companies. Taking supervision of information disclosure as the core, SZSE has constantly moved forward supervision by industry and by category and increased the pertinence and efficiency of information disclosure supervision. Fifth, SZSE has kept improving transaction systems to perfect trading environment, enrich product system and boost market interconnection.
General Manager Wang indicated that stock options are standardized products on exchange and mature derivative instruments in financial market, featuring the functions of price discovery and risk management. Expanding the pilot of stock options helps strengthen the investment and financing function of the exchange spot market. As the launch of Shenzhen-Hong Kong Stock-Connect is coming, both domestic and foreign investors hope SZSE will provide corresponding risk hedging instruments. SZSE's development of stock option business aims to serve the multi-layered spot market and the real economy. SZSE's developing stock ETF option business holds favorable spot goods basis and large market demands. The stock ETF options will be effective risk averse tools for index investment and contribute to the expansion of indexing investment in emerging industry stocks, which caters to the needs of investors and Shenzhen market development.
By far, SZSE's options preparation work has been in order, the spot market runs stably and SSE's stock options pilot has been operated steadily with sound functions. All these are signs that condition for expanding stock ETF options to SZSE are in place.
