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On 29 October, 2013, Mr. Chen Dongzheng, Chairman of SZSE attended the 53rd annual conference of World Federation of Exchanges (WFE) in Mexico. Mr. Chen delivered a speech on Panel One on the subject of “Supporting SME Development, Economic Restructuring and Upgrading.” Focusing on the subject, Mr. Chen introduced the situation in China based on Chinese financial market and SZSE practical experience.
Mr. Chen shared the experience of Chinese capital market in supporting SMEs with international counterparts. SMEs are presented with good opportunities for development during economic restructuring and upgrading in China. Firstly, SMEs serve as a robust impetus for economic development, making important contributions to the nation’s GDP, innovative drive, tax revenue and employment. Secondly, the multi-tiered capital market strengthens service for SMEs. The SME Board and ChiNext Market provide important financing platforms for SMEs. Thirdly, capital market guides substantial private capital to invest in SMEs thanks to its unique market-oriented mechanism and guiding role. Fourthly, the development of SMEs enhances industrial upgrading and economic restructuring, and it helps to balance regional development. Fifthly, capital market promotes legal development and facilitates policy changes. Governments of different levels support SMEs via legislation and various supportive measures.
The experience of China’s capital market supporting SMEs has been drawing wide attention. Chairman Chen Dongzheng answered questions from the floor. He pointed out that in spite of promising prospects, the Chinese economy faces severe challenges. With accelerated the development, the multi-tiered capital market will more efficiently guide private investment, promote industrial upgrading and sustainable economic growth. In the process of integration of the world community, it requires mutual accomodation, concerted efforts, consensus building to solve problems and achieve win-win situation.
WFE is an international organization, including 57 stocks, futures and options exchanges. WFE annual conference is the global summit of the industry. The 53rd WFE annual conference was held by Mexican Stock Exchange, and the discussion covered economic policy and financial market, exchange strategies, regulation and innovation.
