Shenzhen Stock Exchange held the 7th Session of Listed Companies’ Open House Program for Foreign Investors on March 16 and 17, 2015. More than 30 institutional investor representatives coming from the United States, Germany, France, Canada, Singapore, South Korea, Hong Kong, etc. visited and investigated seven listed companies, which were Bauing Decoration, Capchem, Woer, Glory Medical, Hytera, SZZT and Evenwin.
The seven companies visited, five of which are listed on the SME board and two of which are listed on the ChiNext board, engage in the industries of architectural decoration, new materials, medical engineering, private network communications, financial electronics and precision manufacturing respectively. The visitors listened to the companies’ introduction of business situations, talked to the senior executives face-to-face, and stepped into their labs and workshops to investigate the production and operations.
The visitors were not only QFIIs but also other professional institutional investors, such as sovereign wealth funds, asset management companies, mutual funds and investment banks, who were expecting to invest in the mainland markets through the mechanism of “Shenzhen-Hong Kong Stock Connect”. These investors focus on the fundamental analysis and research on listed companies, and pursue long-term investment and value investment.
The active communications among foreign investors and listed companies were focused on topics like market position in the industry and distinguish advantage of the companies, a particular business or market’s contribution to the growth, prospects of overseas market development and future growth, etc. The questions were answered based on information disclosure principles by senior executives of the companies, who welcomed more attention, constructive comments and suggestions from foreign investors
Six sessions of similar activities have been organized and held by SZSE before, including a special activity of ChiNext-Listed Companies’ Open House Program for Foreign Investors, which covered outstanding listed companies in Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou and were participated by over 200 foreign investor representatives in total. This time’s activity was part of SZSE’s 3.15 investor protection serial activities, succeeding the launching ceremony for SZSE WeChat Public Service Platform and the 3rd Session of SZSE’s Open House Program for Investors, and the 22nd Session of Securities Brokers’ Open House Program for Investors.
Under the uniform deployment of the China Securities Regulatory Commission, SZSE went to Europe and carried out roadshow for China capital market in September, 2012, when the construction of a service system for foreign institutional investors was started. SZSE has actively optimized foreign investor services, improved English website and opened a special zone for QFIIs and a mailbox for foreign investors, made weekly news in English language to extend market updates to foreign investors, propelled listed companies to disclose English financial indicators and announcements, and continuously explored new forms of foreign investor relations management services.
As of the end of September, 2012, QFIIs were holding market capitalization of RMB 53.4 billion (accounting for 1.19% of the total free-float market capitalization) in the Shenzhen market, including RMB 10.7 billion in the SME board and RMB 1.5 billion in the ChiNext board. As of early March, 2015, QFIIs were holding market capitalization of RMB 163.4 billion (accounting for 1.43% of the total free-float market capitalization) in the Shenzhen market, including RMB 45.3 billion in the SME board and RMB 13.7 billion in the ChiNext board.
