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Hundreds of trees were cultivated, and more to be sowed. In 2017, under the leadership of China Securities Regulatory Commission (“CSRC”), the Shenzhen Stock Exchange (“SZSE”), with the aspiration of serving the real market in mind, conducted the market cultivation work that centered on facilitating China's economy transforming to high-quality development, firmly grasped the responsibilities and mission of multi-level capital markets of new era, proactively served supply-side structural reform focusing on key areas and key regions, steadfastly push forward the construction of market cultivation service system, fully supported the conversion of economic development kinetic energy, strived to sow hope and discover the future for the higher quality synergetic development of technological innovation and modern finance.
Work hard, make breakthroughs, creating a leading innovation capital formation center
In 2017, the SZSE, together with market agencies such as securities companies and venture capital firms, supported the innovative enterprises’ access to the capital market in multiple ways. They visited a large number of companies that planned to go public, or planned to issue bonds or ABS products, led the industry leading enterprises, intermediaries, venture capital institutions, etc. in organizing a number of seminars for emerging industries or listing, and launched "Flint Spark" venture capital alliance jointly with Torch Center of the Ministry of Science and Technology, held multiple listing exchanges seminars, investment management standard training courses and other activities, and established a whole range of serving system for pre-IPO , IPO, or post-IPO for the companies.
The SZSE worked hard to overcome difficulties, studied exhaustively and addressed proactively to the common problems that innovative enterprises encountered in the process of going public. In allusion to the ubiquitous problems such as high R & D expenses, large sum of loss to offset and more than enough number of shareholders having equity options, that encountered by start-up enterprises, the SZSE successively compiled reports that gave suggestions on solving the problems such as the capitalization of R & D expenses, cumulative loss to offset, "three types of shareholders" and equity incentive and other issues, after conducting in-depth researches, and learning about the "pain points" of the market entities in utilizing the capital market, promptly gave feedback to the actual demands of innovative enterprises, boosted the optimization of the market system.
The SZSE strived to pushed forward the technology finance special services plan, aiming at creating a venture capital ecosystem that support start-up innovation. The SZSE launched special actions of serving Guangdong technological enterprises’ access to capital market, signed strategic cooperation agreement with Science and Technology Department of Guangdong Province, established supportive platform for technology enterprises and investment and financing service system. The SZSE joined hand-in-hand with Zhongguancun Administrative Committee and other institutes in inaugurating “Zhongguancun Innovative 100 Listing Cultivation Program”, selecting, coaching, and cultivating technological innovation enterprises in Zhongguancun Science Park. Via special service plan, the SZSE focused on serving the innovative enterprises, led the float of innovation capital, and probed the cultivation of groups of demonstrative technological enterprises.
The SZSE gave full play to its advantages, made bold explorations, realizing breakthroughs in service of state-owned enterprises from scratch, continuously sum up their experiences, and gradually formed a new mode of serving state-owned assets state-owned enterprise reform. The SZSE signed strategic cooperation agreements with a number of large enterprise groups and customized comprehensive service plans for nearly 30 central SOE groups covering diversified contents of listed resources cultivation, mergers and acquisitions, fixed income, science and technology finance and capital operation planning. The SZSE jointly held several issues of capital operation special training activities, coordinated in solving practical problems, organized seminars and themed road shows. The SZSE will help deepening reform and development of state-owned assets and state-owned enterprises, boost state-owned capital to become stronger and better, and foster world-class enterprises with abundant innovation and global competitiveness.
Take root in local, extensive sowing, serving regional economic restructuring and development
From pattern to consciousness, the "seeds" of innovative development of capital market services are sown throughout the country and rooted. In close cooperation with local governments, the SZSE worked together to cultivate listed resources through extensive mobilization, seminars and trainings. The SZSE and a number of provincial and municipal governments signed a strategic cooperation agreement to co-operate in the localization of entrepreneurship and innovation enterprises listed cultivation base, implemented the "SME Listing Resource Cultivation Project" with the regional Securities Regulatory Bureaus, the financial offices, the listing offices, Development and Reform Commission, High-tech Zone, regional equity exchange centers.
The SZSE made major breakthroughs in key area, serving proactively in weak link. The SZSE launched “Firmiana Project” special service plan to cater the Zhejiang “Phoenix Action" program. The SZSE also provided a package of comprehensive services for many provinces and cities, promoting the improvement of the quality of enterprise groups in key regions and promote the industrial upgrading in the entire region. The SZSE took root in economically underdeveloped areas such as Inner Mongolia and Ganzhou and explored service solutions that meet the needs of the local development stage, providing timely assistance to reduce the regional economic disparity and promote the balanced development of the region.
Talent training is the key to "sowing seeds". The SZSE organized market cultivation and training activities, publicizing the latest financial knowledge and cultivating professionals in the financial field for local governments. In 2017, more than 100 capital market training activities on the subjects of restructuring and listing, auditing practice and fixed income were held, and more than 400 of seminars were held over different regions. More than 200 financial cadres from over 20 provinces and cities across the country participated in the seminar on “SZSE Serving the Local Economic Construction” held in Xi'an, Shaanxi Province. The "Home of Financial Office" of the SZSE invited more than 30 financial cadres throughout the year to conduct a one-month learning exchange, training professionals for localities in urgent need of learning capital markets.
A good harvest depends on the spring sowing：The Perfection of cultivation service work system
Good harvest will come after diligent sowing and cultivation. Firstly, the SZSE continued to perfect a market cultivation service work system. Based on many years’ exploration, the SZSE took its root in local areas and went deep in the front line to work closely with local government. By constructing listing cultivation base and launching special service projects in various places, the SZSE forged a national service net and capital formation chain covering all phases of enterprises’ growth and listing procedure with joint effort from market institutions including securities traders and venture capital. A market cultivation service system in support of regional economy, innovation and entrepreneurship has been set up initially.
Secondly, the SZSE supported the cultivation of talents in financial filed. In 2017, different capital market training classes and conventions held by the SZSE attracted more than 10,000 people from the senior management of pre-listing companies including secretaries, financial directors and independent directors. Seminars and symposium gathered more than 30,000 people from the government and enterprises. More than 300 professional local finance cadres attended the “Home of Financial Office” and financial officials symposium organized by SZSE. In doing so the SZSE has transferred a lot of professionals to the capital market.
Thirdly, the SZSE served a batch of high quality new listed companies. By cultivating a batch of excellent reserved listing resources, pushing them to initiate reform and restructure, sign for tutoring and public reports and guiding enterprises to regulate operations as well as perfect governance structure, SZSE has served high quality listing resources for the capital market. In 2017, there were 222 IPO companies with a total IPO raised funds amount of RMB 92.5 billion, of which 81 were on SME board and 141 were on the ChiNext board. The number of the listed companies and financing amount increased 79% and 95% respectfully and the numbers and scales of IPO enterprises in Shenzhen Market were among the highest in the world. Among the IPO companies, 84 were strategic emerging companies, accounting for more than one third in all IPO companies. This played a significant modeling role in guiding capitals in the investment of innovation and entrepreneurship enterprises and facilitating the science and technology achievements transformation. The biggest genomics research and development institution BGI listed on SZSE’s ChiNext board in July, 2017, raising an amount of RMB 0.484 billion to the upgrading project of medical test solution platform and the construction project of genomics research center. Among the IPO companies, there are Electric Connector Technology, Gian, SG from developed regions such as South China, East China and Beijing and Tianjin as well as Harbin Medisan, Zhuangyuan Pasture and Xintian Pharmaceutical from the underdevelopment regions such as Northeast, Northwest and Southwest of China. This is a positive contribution to the implementation of the state’s regional balance development strategy. Besides Goke Micro, Viewshine and other private enterprises, there are IPO representatives of Central Government-led enterprise subordinated companies such as SCC and CASIT, providing a sound condition in promoting the industrial recourse integration of state-owned capitals and enterprises with the help of capital market.
In 2018, SZSE will take Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era as the guideline to adapt to the new development demands of high quality economy, carry out market cultivation service work in a solid way and actively guide financial resources to serve the real economy. SZSE will remain true to the original aspiration, keep the mission firmly in mind, keep pace with the times and forge ahead despite of difficulties.
