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The overall development in China’s capital market enters a crucial period in 2013. In accordance with policy lines as defined by 18th National Congress of CPC and other central government conventions, SZSE will strive to enhance the capital market’s transparency, penetration, coverage and inclusiveness. SZSE will accelerate development in the multi-tiered capital market system and facilitate transformation of economic growth model in an all-around way. SZSE will seek progress while maintaining stability, solidly prevent and dissolve market risk, maintain stable operation of the multi-tiered capital market, lower the cost of financing for the real economy and strongly support SMEs and technological start-up companies. Committed to reform and innovation, we will solidly implement the overall plan for capital market reform, reinforce existing achievements and consistently push forward reforms in greater depth and on a wider scale. SZSE will improve quality and effectiveness, safeguarding fundamental interests of investors. Putting investors at the top of priorities and leveraging on coordination of self, administrative and legislative regulation, we will enhance responsibility and accountability of market participants, improve quality of intrinsic development of capital market and its power to deliver long-term returns.
SZSE outlines its key tasks for 2013 as follows:
1. We will improve market system and accelerate development in the multi-tiered capital market. We will further enhance quality of the SME board and ChiNext, and ease the industry restrictions of ChiNext. SZSE also facilitates business expansion and competence-building by main-board-listed companies. SZSE will promote reforms of B share market and continue to spearhead the pilot project of transferring B shares to H shares. SZSE will actively support the new National SME Share Transfer System and regional OTC markets to expand coverage of the capital market. SZSE will also help accelerate development of the bond market in an effort to optimize capital market structure.
2. We will optimize market mechanism and reinforce reforms in major fields. SZSE will continue to deepen IPO reform, orderly and steadily implement the new delisting system, promote the winnowing mechanism, and improve the management and internal control of listed companies. SZSE will facilitate establishment of a flexible and efficient merger and acquisition evaluation system, encouraging M&As among listed companies in the same sector. Evaluation procedures will be simplified for M&A projects that do not cause material changes in its main business.
3. We will strengthen frontline supervision, improving market transparency, and promoting the quality of market subjects. Centering on information disclosure, SZSE will adopt harsher punishment for irregularities such as accounting frauds, improve the anti-insider-trading system and strengthen the supervision of proceeds. SZSE will also make an effort to offer clear and efficient business rules, reinforcing foundation of self-regulation. SZSE will boost regulatory innovation, strengthen awareness and responsibility of information disclosure. SZSE will further expand the scale and categories in the pilot project to allow listed companies direct information disclosure to the public. Besides, SZSE will implement continuous supervision, reinforce professional training to board secretaries and strengthen credibility building.
4. We will enrich product variety and improving the quality of issuer incubation and promotion. Leveraging on current supportive platforms and empirical analysis, we will continue to promote business innovation in ETF, margin trade, equity stocks collateralization. Will also emphasize product innovation such as asset-backed securities and provide complete product lines for professional and institutional investors to participate in the capital market. SZSE will continue to strengthen services to key and weak areas of the real economy, intensify cooperation with local governments, mobilize intermediary agencies and optimize the joint-incubation mechanism.
5. We will consolidate fundamental services, continuously deepening investor protection, reinforcing the investor-oriented and market-based service system. We will further enhance Investor Call Center, EasyIR(an Internet-based interactive investor relations service),and Omnimedia Platform for Investor Research and Information Disclosure. SZSE also works hard to narrow the gaps between different geographic regions and user groups and offers comprehensive and balanced education and service to various investor groups. We will continue to promote distance training and reduce cost for the market community.
6. We will strengthen clean administration, internal management and actively perform social responsibilities. In line with central government policies on disciplinary improvement, we will continue to improve work ethics, elevate anti-corruption actions, strictly practice diligence and thrift, constantly improving market credibility and promote staff cohesion and effectiveness. We will strengthen risk management and assure safe and stable market operation. We will continue to participate in poverty-relief activities, intensify effort in ecological improvement program known asCentury Youth Reforestation in Alashan deserts of Inner Mongolia.
Furthermore, SZSE will pursue and promote several innovation programs, consolidate foundation for market development, and further implement the arrangements by the National Securities and Futures Regulatory Working Conference:
1. 1. Kicking off special project “Know Your Shareholders”.
We will optimize functions of EasyIR, extending information coverage and emphasizing listed companies’ timely disclosure research reception by institutional investors. SZSE will promote pilot online video conferencing for shareholders and optimize online voting system. We will continue Listed Companies’ Open House Program for Investors, and introduce further online multi-media interactive services. Taking this opportunity, SZSE will intensify efforts in establishing a long-term investor relations management mechanism, upholding awareness of proactive services and shareholder returns.
2. 2. Implementing campaign against new-share speculation
In support of IPO reform and special inspection on IPO candidates’ finances, SZSE will analyze typical big-account speculator on new shares and the small-cap retail investors suffering continuous losses in new-share speculation, improve investor suitability management and guide members’ self-regulation though self checks and random inspections. By ex ante preventive measures, strict control during risk events and ex post punishment, we will intensify regulation and control over new-share speculation. We will also strengthen risk alert, improve information disclosure on trading profile of new shares, enhance transparency and reinforce market restraint.
3. 3. Setting up “Home of SMEs”.
We will set up a comprehensive service platform for SMEs and growth enterprises by integrating resources. The platform will provide value-added services covering listing, training, information, exhibition and business promotion. The platform will be public service and open architecture in nature, facilitating communication between and among market participants through the Internet.
4. 4. Establishing “Supermarket of Funds”.
We will expand and strengthen ETFs, structured funds, and listed open-end funds. We will intensify efforts in developing products such as cross-market and cross-border ETFs, bond ETFs, gold ETFs, and currency ETFs. SZSE aims to develop an important platform for efficient, convenient and low-cost asset allocation on domestic and international markets and serving wealth management demands from various funds including pension, insurance, and public housing provision.
5. 5. Establishing “Innovation Platform for Fixed Income Products”.
Drawing on experience from the pilot program of SME private placement bonds, we will improve business rules, promoting innovation in bond products such as private placement bonds, exchangeable bonds, M&A bonds, and subordinated bonds issued by securities companies. SZSE will continue to evaluate asset-backed securities, promote market incubation and improve institutional development. We will leverage on asset-based securities products to facilitate financing for infrastructure and municipal projects and better serve the real economy.
6. Improving service of “QFII Information Interface”.
We will promote the new version of SZSE English-language website, enhancing international investors’ understanding of Shenzhen market. Main indicators of information disclosure will be timely translated into English. We will encourage listed companies to prepare English summary of information disclosure, meeting the information demands of international investors. We will work with main foreign index agencies to promote inclusion of Shenzhen stocks into their investment indices. SZSE will also actively develop international cooperation and increase the level of openness.
