On November 14, President Wang Jianjun was invited to attend the Chinese and French Entrepreneurs’ Luncheon, the supporting activity of the Fourth China-France High Level Economic and Financial Dialogue, and deliver a speech as the representative of Chinese entrepreneurs. Following is the complete text of the speech.
Good afternoon honorable Vice Premier Ma Kai, Minister of Finance Michel Sapin, ladies and gentlemen,
Shenzhen Stock Exchange is one of the two major exchanges in China’s mainland. The total market capitalization of listed companies has exceeded RMB 22 trillion so far this year, and it ranks No. 2 and No. 3 in the world respectively in fund raised by equity and trading value. Shenzhen Stock Exchange is a major force in supporting development in China’s innovation.
Innovation is profoundly changing the structure and quality of China’s economy. Driven by popular entrepreneurship, innovation and Made in China 2025 plan, all sources of innovation have been fully mobilized. China’s economy is changing its power of growth and its economic structure is moving towards medium to high end. Take Shenzhen as an example, once a fishing village, it has become China’s important center of innovation. Approximately 100 thousand companies have been established every quarter this year and interesting entrepreneurial stories are popping up every day. Shenzhen has become a representative and epitome of China’s innovative development. Although China is an old country, it is well capable of self-reinvention. Strong innovative power is flourishing in this ancient land.
Supporting innovation is the primary mission of Shenzhen Stock Exchange. Since 2000, Shenzhen Stock Exchange has focused on serving innovative and growth enterprises. Today, Shenzhen Stock Exchange has over 1800 listed companies, of which more than 70% are hi-tech companies, and 93% of ChiNext-listed companies are hi-tech companies. Shenzhen Stock Exchange has become the gathering place and ideal listing venue for hi-tech companies. In the last three years, revenue and net profit of listed companies have been growing steadily, and revenue and net profit of companies listed on the ChiNext Market has grown as much as 32.4% and 44.3% respectively in this year, fully demonstrating great vitality of China’s new economy.
Innovative China is full of opportunities and Shenzhen-Hong Kong Stock Connect opens a new gate. In October, Shenzhen Stock Exchange held global roadshows for Shenzhen-Hong Kong Stock Connect. We learnt that international investors were generally optimistic about China’s economic outlook. We were told by many international investors that Shenzhen Stock Exchange is the right market to know about China’s innovation and new economy. In the last three years, the numbers of trading accounts and shares held by QFIIs have doubled. Shenzhen-Hong Kong Stock Connect will be launched shortly and will offer new opportunities for international investors to participate in China’s economy.
Although there is a long distance between China and France, the new capital link is taking shape. Take cross-border M&A conducted by companies listed on Shenzhen Stock Exchange for an example, the value has been increasing by 100% for three consecutive years, and the growth rate is even higher this year with total value reaching USD 18.5 billion in the first half. The main destination of cross-border M&A activities is Europe, which contribute substantial investments and jobs to France and other European countries. However, cross-border M&A conducted by our listed companies fails at times as a result of insufficient tools, asymmetric information and lack of experience. In order to better serve listed companies’ strategy of “going out”, high-level exchanges and communications between Shenzhen Stock Exchange and Euronext continue to increase in recent years, and two exchanges jointly explore ways to better serve innovative and M&A activities of enterprises. Last month, two exchanges signed a cooperation agreement with the witness of Mr. Matthias Fekl, State Secretary to the Minister of Foreign Affairs and International Development of France, and Mr. Maurice Gourdault-Montagne, Ambassador of France to China. We will actively promote market information exchange and cross-listing of index products, facilitate matching of investment and financing, support internationalization of RMB and development of Paris as a financial center.
Gathering people and goods all over the world and let everyone take what he needs. This is the ideal our ancestors had while establishing the market. We will inherit this ideal, promote two-way opening and inclusive development of China’s capital market, and enhance capacity of supporting innovation and serving the real economy. In the future Shenzhen Stock Exchange and China’s capital market will offer more opportunities and options to enterprises and investors from France and the world.
At last, we welcome your visit to China and the Shenzhen Stock Exchange!
