The meeting point of east longitude 114 degree and north latitude 22 degree, where Shenzhen Stock Exchange (“SZSE”) located in the world’s coordinate system, connected the world tighter and closer in 2017. The international map depicted by the SZSE is becoming gradually “holographic”.
In 2017, the Shenzhen Stock Exchange fully implemented the spirit of the 19th CPC National Congress, implemented the China Securities Regulatory Commission's strategic deploy for capital markets internationalization, promoted the formation of cross-border capital, extended the featured service chain, enriched the financial product system, enhanced the international exchanges and cooperation, improved overseas investor relations management, built a new pattern of opening up in an all-round way, and promoted the "Belt and Road" construction and international development in an orderly manner, striving to create the world's leading innovation capital formation center.
More Effective Connection - Building a Cross-border Capital Service Mechanism
On the SZSE's international map, the brightest link in 2017 is the establishment of a more professional and effective capital exchange channel - the cross-border capital service mechanism.
During the year, the SZSE shared resources channels with domestic and foreign institutions in a proactive manner, established cooperation network, provided information services as a link to promote cross-border investment and financing matching, created a cross-border financial services ecosystem, and provided full-cycle, multi-channel financing and nurturing services to start-up enterprises, giving play to the role of finance in supporting the real economy.
Focusing on the cross-border development and investing and financing needs of the enterprises, the SZSE started the cross-border capital service mechanism and provided the most credible one-stop Cross-border investment and financing services for domestic and foreign enterprises, basing on the domestic operational experience and technical means of "Science and Technological SME Growth Roadmap Plan 2.0", pushing forward the integration of high-quality industries and capital between China and countries along the "Belt and Road" and developed markets.
Since 2017, cross-border capital service mechanism has been successfully implemented in seven the " Belt and Road" countries such as India, Cambodia, Laos, Pakistan, Vietnam, the Philippines and South Africa, with multiple featured industries enterprises road shows being planned home and abroad, "online and offline" road shows and information docking services being provided to 50 overseas enterprises and more than 4000 domestic investment institutions, and standardized solutions for the matching overseas enterprises and China's innovative capital being provided.
In particular, the "Shenzhen London Science Venture Capital and Financing Service Alliance", jointly established by the SZSE and the London Stock Exchange Group, has been included in the achievement list of the ninth Key Economic and Financial Dialogue between the two countries and was successfully launched on December 16, 2017. It further expanded the scope of investment and financing services for both science and technology-based start-up enterprises and SMEs in the capital markets of the two countries and increased new channels for the matching of innovative capital of China and Britain. The project will provide full chain services including financing project display and road show, assessment service, corporate training, online investment and financing community and listing cultivation, and will continue to build a two-way service mechanism for science and technology startups and investment institutions in China and the United Kingdom.
In addition, cross-border capital service mechanisms make full use of the resources of domestic and overseas market institutions, extensively establish strategic cooperative relations, and continuously extend the scope of cooperation. SZSE cooperated with Bank of China, CCB International, Haitong International and other Chinese financial institutions in overseas markets and foreign investment banks in establishing a network that promotes the integration of resources, shares information, jointly providing customized investment and financing service for the going out of our enterprises of different growth stages.
More solid foundation- optimizing cross-border financial product system and infrastructure construction
In 2017, the SZSE devoted itself to giving play to its capital platform function, enriching the sequence of cross-border financial products, optimizing cross-border infrastructure construction, facilitating the global allocation of assets of domestic and overseas investors, and providing continuous financing channels for the "Belt and Road".
SZSE explored innovation in fixed income varieties, launched pilot for the RMB Bonds (Panda Corporate Bonds) issued by overseas companies, and actively promote the issuance of Panda Bonds, Cross-border Assets Securitizations and Other Products of companies along the "Belt and Road", supported the infrastructure construction of the countries and regions along the “Belt and Road“. By the end of 2017, a total of 3 overseas companies had issued 5 panda bonds in the SZSE, with total issuance amounting up to RMB 7 billion.
The SZSE actively promoted the development and promotion of cross-border indices and fund products, explored and developed overseas index system, focused on building a group of Shenzhen market core index overseas fund products, guided overseas investment institutions to allocate assets in Shenzhen market and promoted more fund that tracked overseas indices to become listed on the SZSE so to meet the international assets allocation demand of domestic investor.
Through continuous improving cross-border infrastructure construction, SZSE facilitated the interconnection of domestic and international markets. Through mutual Recognition Platform for Mainland and Hong Kong Mutual Funds, platform services were provided to expand sales channels for mainland funds and Hong Kong funds, consequently fund sales costs were reduced and interconnection of mutual fund markets were promoted. As of the end of 2017, a total of 65 mainland participating institutions and 30 Hong Kong participating institutions had access to the platform, and the total amount of fund subscribed through the platform has reached a total of 21.7 billion yuan.
The SZSE's financial data exchange platform provides a one-stop solution for data exchange among various participating agencies in China's securities market. It has cooperated with many major international service platforms in the world. Through the construction of Hong Kong nodes and the expansion of cross-border business, it plays a pivotal role in information exchange between domestic and overseas capital markets.
More Intensive Exchanges - Deepening Overseas Exchanges and International Cooperation
In 2017, opening the international map of the SZSE, the SZSE’s connecting lines with overseas are becoming denser and denser, just like an aviation route map.
During this year, the SZSE continued to innovate in the form of cross-border cooperation, established a normalized and high-level exchange mechanism, built a global partnership network, actively participated in joining the international organization platform, and shared "China Model" through diversified ways such as equity cooperation, technical consultation and business training, presented the SZSE’s first-line supervision and market development experience, enhancing the radiation power and international influence of China's capital market.
The SZSE has actively expanded multi-level exchanges and cooperation with countries along the “Belt and Road” and developed markets. In 2017, the SZSE successively held high-level visits to the securities regulatory agencies and market institutions in eight countries including India, Cambodia, Myanmar, Laos, Canada, the United States, Vietnam and the Philippines, and signed or renewed cooperation MOU with four overseas exchanges including Bombay Exchanges in India, Phnom Penh Exchanges in Cambodia, Laos Securities Exchange , Canada Toronto Exchange Group, achieved the global coverage of 40 overseas exchanges and market institutions.
SZSE provide capital markets featured training according to the characteristics of the markets along the "Belt and Road". In 2017, the SZSE provided tailor-made business training programs upon the request of the exchanges of Pakistan, Vietnam, Laos and Iran. At present, the SZSE has provided customized training to nearly 200 people from 8 exchanges and 3 regulatory agencies in 9 countries along the "Belt and Road". These training effectively enhanced the overseas market's recognition of the capital market in China and intensified the soft power of China's capital market, and boosted common development of market along the "Belt and Road".
SZSE deeply participated in the capital market construction along the "Belt and Road" in the form of equity cooperation. In 2017, jointly with CICC and the Shanghai Stock Exchange, SZSE acquired 40% of the equities of the Pakistan Stock Exchange. Leveraging the SZSE’s operating advantage in independent development of technology systems, the SZSE actively played its shareholder’s role in the corporate governance of the Pakistan Stock Exchange, strategically supported the Pakistan Stock Exchange’s development and improvement of independent technical system, supported the construction of local capital market infrastructure, explored and promoted a full range of union and sharing of technologies, markets and facilities.
SZSE has extensively participated in the affairs of international organizations such as IOSCO, World Federation of Exchanges and Asian and Oceania Stock Exchanges Federation, and shared experiences in building a multi-level capital market and serving the development of small and medium-sized enterprises through giving speeches and releasing special reports. SZSE joined the UN Sustainable Stock Exchange Initiative to become the 67th partner exchange, boosting market sustainability and green finance.
The SZSE has actively push forward cross-Strait financial cooperation and boosted cross-Strait non-government exchanges. With the help of the "Flint Spark" entrepreneurial club, the SZSE gave a play to its advantage of market organization and resources coordination, and mobilized social resources such as listed companies, start-ups, investment institutions and financial intermediaries, and organized "Flint Spark Taiwan Student Start-up Camp" for 64 Taiwanese college students. The event effectively raised the sense of intimacy and identity of Taiwan's young people toward the motherland and created a good atmosphere for deepening the cross-Strait education cooperation and promoting cross-Strait financial exchanges.
Further Understanding - Improving the Service Level of Overseas Investor Relations
In 2017, through the multi-channel exchange of information, the mutual mapping between the SZSE and the rest of the world on the internationalized map gradually became clear and the mutual understanding deepened.
This year, the SZSE actively promoted listed companies to carry out overseas investor relations management, improve the service system, establish a normalized communication and feedback mechanism, optimize the investor market structure and helped the international development of listed companies.
The SZSE and the Hong Kong Stock Exchange conducted a total of 5 rounds of Shenzhen-Hong Kong international road show activities, and held 123 publicity campaigns for 600 overseas investment institutions, covering the major global financial markets and fully demonstrating the potential of China's innovative economy and the features of capital market. The SZSE continuously innovated its online exchange platform, and held Shenzhen-Hong Kong online road shows via international media platforms such as Bloomberg and Reuters to enhance the efficiency of road shows and expand the coverage and dissemination scope.
SZSE promoted the normalization of overseas investor relationship management of Listed Companies. In 2017, the SZSE, jointly with securities companies home and abroad, held 13 reverse road shows and 3 overseas investors’ entrance to public companies activities, and for the first time led 8 public companies listed in SZSE to go to the United States for road shows. A total of more than 1,000 representatives from overseas investment institutions and more than 100 companies listed in Shenzhen market participated in the above activities. The SZSE provided bidirectional, smooth and effective communication channels for overseas investors and listed companies; SZSE also optimized the English instant translation function of "Easy IR" , and required the listed company of northbound stock to disclose information both in English and Chinese on the designated website, improving the level of English information disclosure of listed companies, and reducing information asymmetry; The SZSE pushed forward L2 market quotation’s landing in Hong Kong, further expanding the channel for foreign investors to access to information; the SZSE also organized regularly training courses on foreign investor relations management, Improving the professional level and international competitiveness of listed companies, improving equity culture and corporate governance system of listed companies.
Next, the SZSE will continue to thoroughly implement the spirits of the 19th CPC National Congress, the Central Economic Work Conference and the National Financial Work Conference. With the guidance of China Securities Regulatory Commission, the SZSE will continue to open up to the outside world, deepen international cooperation, improve cross-border capital service mechanism, promote The interconnection of domestic and overseas capital markets, and comprehensively push forward the development of a world-leading center for the formation of innovation capital during the 13th Five-Year Plan.
