On June 7, Shenzhen Stock Exchange (“SZSE”) held the 5th annual seminar of “Trading Rules Day”, which was themed by “The Design and Optimization of Trading Systems in the Two-way Opening-up of the Capital Market”. Representatives were invited from China Securities Regulatory Commission (“CSRC”), Hong Kong Stock Exchange, Tokyo Stock Exchange, Morgan Stanley Capital International Inc., QFII, RQFII, securities brokers and fund companies.
In the wake of the growing trend of two-way opening-up of the capital market, the State Council recently promulgated “Opinions on Further Promoting the Healthy Development of the Capital Market” (the “9 New Opinions” for short), which gives a guideline for the further reform and sound growth of the capital market in the future. With the increasing volume of overseas products tracing A-share stocks, A-share stocks being included in FTSE Xinhua China A50 Index and possibly to be included in MSCI Emerging Markets Index or other international benchmark indices, overseas products and business innovation has seen growing vigor, plus the increasing involvement and influence of overseas institutional investors represented by QFII and RQFII. Such situations are making new demands on the existing trading systems design and trading supervision systems. To implement the State’s strategic deployment regarding “further opening-up of the capital market and innovation of trading mechanism” in the “9 New Opinions”, the seminar focused on the optimization of trading systems in the two-way opening-up of the capital market, learnt from experience of overseas mature markets and put heads together to discuss the optimization of closing price formation mechanism, with basis on the issue of price fluctuation in the late-day trading happened on the indices adjustment day last year.
According to the principal of SZSE, trading systems are the vital key for the Exchange to perform its functions of organization and management of securities trading. Trading systems shall meets investors’ needs and conform to national and international conditions. Adhering to CSRC’s strategic deployment, SZSE will carry out research on the optimization of late-day trading mechanism, further enhance the liquidity and transparency of late-day trading, reduce price fluctuation of closing price, constantly perfect the monitoring and controlling mechanism under new trading pattern, and push forward the two-way opening-up and sound development of the capital market.
