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Shenzhen Stock Exchange has recently launched series activities of “Realizing Chinese Dream and Building up an Upgraded Multi-tiered Capital Market” in Beijing, Shandong, Guangdong, Hubei, Shaanxi, Heilongjiang and et al. in a move to further improve the capital market’s ability and level to serve the real economy, actively cooperate with China Securities Regulatory Commission’s call for “Two Safeguard and One Foster” (to safeguard the markets in an open, fair and impartial manner; to safeguard the legal rights and interests of investors, especially mid- and small-cap investors; and to foster the healthy development of capital markets), achieve the two centenary goals and to boost Chinese Dream to consolidate the foundation. The activities are featured with:
Carrying out Special Activities of “Know Your Shareholders” in Various Ways
I. “Step into Listed Companies”. After 20 years’ development, the total amount of listed companies in the Shenzhen Stock Exchange has reached 1537 and the number of investor accounts has exceeded one hundred million. However, investor relation management of listed companies remains in poor status when comparing with mature markets. On the one hand, it’s hard for listed companies to find breakthrough points and channels even though they think highly of investor management; on the other hand, there’s great different in demands of investors. Many mid- and small-cap investors said that there’s too much information to locate the one they need. The activity of “Know Your Shareholder - Listed Companies' Open House Program for Investors” is designed to bridge the communication between investors and listed companies, getting investors to know listed companies by their own and solving the problems resulted from information asymmetry and distrust in listed companies. Moreover, SZSE has also developed the “Easy IR” – an Internet-based interactive investor relations service. On the platform, investors can not only communication with listed companies in a regulated, direct and timely manner by raising personalized questions to listed companies, but also can share research findings of institutional investors, improving the quality and depth of information acquired and breaking information asymmetry.
II. “Meet Your Brokers”. SZSE Investor Education Center has launched an online interactive and educational product for investors - “Easy IK”, an online investment and educational game, in a move to help investors assess investment risks rationally and cooperate with brokers in elevating the quality of investor suitability management. According to the real transaction data of over 20 years collected in ‘Easy IK’, investors can practice simulation stock trading to have a test on their own investment patterns and risk tolerance capacities based on their simulation trading results, which will be transmitted to the counter of brokers for guidance of investors’ rational investment and value-oriented investment.
As Song Liping, President and CEO of SZSE, pointed out at the scene of the 53rd Listed Companies' Open House Program for Investors---Harbin Fenghua-aerospace Hi-tech (Ticker Symbol: 000901) held today, the special activities of ‘Get to Know Your Investors’ are designed to, on the one hand, provide guidance on strengthening investor relations management for listed companies in a hope that listed companies can maintain good relations with their shareholders and investors, which is similar to their relations with clients, so as to facilitate their mutual trusts and minimize the risk of litigation filed by mid- and small-cap investors; and on the other hand, promote investors’ rational investment by stimulating investors to truly know themselves as shareholders. In addition, listed companies’ open house program also means the process of investigation and inspiration sparking on the side of SZSE. Despite mandatory disclosure, voluntary disclosure becomes an important issue in regulatory work in consideration of the different status, development environment and stage of listed companies. In addition to the Easy IR platform, SZSE has also developed online shareholders general meeting, which has been piloted on the SME board and ChiNext board and further, will extend to all listed companies, in order to address the inconvenience of spot meeting resulted from China’s vast territory. In contrast to the less than 10% of investors involved in online shareholders general meeting piloted in the past, the current pilot has got positive responses with involvement of more and more investors. Listed companies also attach greater importance to the online meeting because it is an effective means to showcase themselves. At present, the most vulnerable pillar is to the height of a building what investor education and management is to our capital market construction. As a result, the issue of protecting investors’ interests and enhancing their qualities shall be addressed from all aspects.
Holding Activities of“Entrepreneurship, Creation and Innovation–Young Chinese Dream”, Making Capital Markets Go into Universities
In an address in the “Youth Day” activity held within the securities and futures regulatory system, Chairman Xiao Gang pointed out that the “Chinese Dream” represented the will of all Chinese people and the capital market should become an important vehicle to realize the “Chinese Dream” given its step-by-step development for over 20 years and the multi-tiered market system forming. In response to Chairman Xiao’s calling, SZSE held activities of “Entrepreneurship, Creation and Innovation–Young Chinese Dream” in universities such as Tsinghua University, Shandong University, Sun Yat-Sen University, Northwest Agriculture and Forestry University, and Harbin Institute of Technology. The latest developments in capital markets were introduced and board chairmen from listed companies were invited to communicate with college students. Under the severe situation of employment, the capital market is important in helping young people realize their dream of “colorful life” by supporting innovative and entrepreneurial activities.
Deepening the Research of How Capital Markets Can Support Key Fields and Weak Links in Economy
Given the fundamental role of agriculture in people’s living, the support to modern agriculture represents the essential requirement of consumption upgrade and food safety. On the one hand, capital markets could solve the price fluctuation problems in bulk farm commodities trading, further protecting the interests of farmers; on the other hand, capital markets could strengthen the support to leading agricultural enterprises, realizing deep processing of agricultural products and industrialization of agriculture. In consideration of the recent hesitate in supporting agricultural companies in the financial circle, there’s urgent need in groping for agricultural enterprises’ law of development and improving services to agriculture-related enterprises. Moreover, it’s said in President Hu’s report at 18th Party Congress that “we should continue to follow a Chinese-style path that integrates the development of military and civilian sectors”, which pointed out a new strategic direction for capital markets to support independent innovation and national defense building. The transfer of military goods to civilian goods could not only substantially reduce R&D costs and realize economies of scale, but also further enhance the quality and function of military goods due to the diversified demands of civilian goods. There would be a brilliant future for capital markets in the progress of civil-military integration development. To this end, SZSE paid visits to Yangling Agricultural Hi-Tech Industrial Demonstrative Zone and the granary province of Heilongjiang, did research in hi-tech listed companies, held capital market seminars for financial cadres in local governments, in a move to deepen the capital markets’ supports to key fields and weak links in the new situation of agriculture development and civil-military integration.
