On July 6, SZSE and the People’s Government of Guangdong Province signed a comprehensive strategic cooperation framework agreement. Ma Xingrui, the Governor of Guangdong and Wang Jianjun, Chairman of SZSE witnessed the signing of the agreement and the unveiling of the SZSE Guangzhou Service Center. It’s an important move taken to implement the policies of the CPC Central Committee and the State Council on stepping up efforts to ensure stability on six fronts and maintain security in six areas by the two parties, and also an effective measure of SZSE to give full play to the role of capital market as a hub and better support Guangdong in winning the battle against COVID-19 and promoting economic and social development. At the meeting, an official from SZSE introduced the product system, financing instruments and experience and practices adopted by the SZSE bond market to serve enterprises.
Born and rooted in Guangdong, SZSE has always attached great importance to serving Guangdong. Since SZSE developed and launched the “Revitalizing Guangdong with Capital” program in 2012, SZSE has leveraged its comprehensive advantages in market, technology, services and location to assist Guangdong in topping other provinces in China through the development of the capital market. At present, 534 Guangdong companies are listed on SZSE, with equity financing amounting to CNY 1.3 trillion and debt financing amounting to CNY 2.1 trillion, ranking first in China. Earlier this year, Guangdong local government bonds were issued through the Ministry of Finance - SZSE tender system. The local government bonds set records in issue volume, bid amount and quantity in a single issuance. Today, with the official launch and operation of SZSE Guangzhou Service Center, Building on the Guangzhou-based service center, SZSE will expand its services further in South Guangdong.
SZSE will, taking the signing of the strategic agreement and the launch of SZSE Guangzhou Service Center as a new opportunity, further leverage the role of the capital market as a hub and expand professional and localized services. First, fully supporting the listing of Guangdong enterprises and Guangdong listed companies. SZSE will support quality enterprises in Guangdong in getting listed on SZSE and in growing bigger and stronger through refinancing, M&As and reorganizations, and facilitate the formation of a modern industrial cluster led by listed companies. Second, giving full support to Guangdong in using the bond market well. SZSE will support Guangdong in using financing instruments such as local government bonds, corporate credit bonds, asset securitization and publicly offered REITs, help central and state-owned enterprises based in Guangdong expand financing channels, put idle assets to better use, and ease the difficulties of small and medium-sized enterprises in accessing affordable financing. Third, jointly facilitating the improvement of the quality of Guangdong listed companies. SZSE will, according to the work arrangements of Guangdong, support leading companies in achieving development by making use of the capital market according to law, refine the winnowing mechanism, and improve their operation and governance.
Guangdong is at the frontier of the reform and opening-up in the new era. SZSE will firmly seize the important opportunity of the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the demonstration pilot zone for socialism with Chinese characteristics, as well as the sweeping reforms of the capital market, and put in place Vice Premier Liu He’s approach of “system building, no intervention, and zero tolerance”. Besides, SZSE will follow the market-oriented, rule-of-law-based reform, go all out to promote steady implementation of the reform of the ChiNext Board and the pilot project of the registration-based IPO system, and help implement the reform plan made by the CPC Central Committee. All these efforts will support Guangdong in winning the battle against COVID-19 and securing economic and social development, and assist Guangdong in topping other provinces of China in developing the system that promotes high-quality economic development and in building a modern economy.
