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SZSE recently successively organized and held the forum of the central state-owned enterprises (SOEs) controlled companies listed on SZSE and the forum of private enterprises. At the forums, SZSE surveyed the achievements that the SZSE-listed central SOE-controlled companies have made in using the capital market to deepen reform and the challenges that they are faced. Meanwhile, SZSE learned about the success experiences that SZSE-listed private enterprises have accumulated in focusing on the development of main business and the realistic difficulties they face. SZSE listened to their opinions and suggestions on how the capital market can further support high-quality development, improve its intrinsic value, facilitate discovery of market value, etc.
The Report to the 20th CPC National Congress proposed building a high-standard socialist market economy, and emphasized that “we must unswervingly consolidate and develop the public sector and unswervingly encourage, support, and guide the development of the non-public sector”, “we will deepen reform of state-owned capital and SOEs, accelerate efforts to improve the layout of the state-owned sector and adjust its structure; work to see the state-owned capital and enterprises get stronger, do better, and grow bigger” and “we will provide an enabling environment for private enterprises, protect their property rights and the rights and interests of entrepreneurs in accordance with the law, and facilitate the growth of the private sector”. CSRC implemented in depth the guiding principles of the 20th CPC National Congress and earnestly put in place General Secretary Xi Jinping’s important instructions on the reform and development of the capital market and the improvement of the quality of listed companies. CSRC recently formulated the Three-year Action Plan for Improving the Quality of Listed Companies (2022-2025) (hereinafter referred to as the Three-year Action Plan), making it clear that we should “enhance the competitiveness of listed state-controlled enterprises” and “develop more standard and more dynamic listed private enterprises”. SZSE faithfully organized the study of the Three-year Action Plan and firmly carried it out. Combining the outline for building a “quality innovation capital center and world-class exchange” and the strategic development plan of SZSE during the 14th Five-year Plan period, SZSE formulated the Work Plan for Implementing the Three-year Action Plan for Improving the Quality of Listed Companies (2022-2025), stating that SZSE will, in three years, strive to further consolidate the foundation for the high-quality development of SZSE-listed companies and help form a fleet of listed companies that proactively serve national strategies, have outstanding innovation capability and standard corporate governance, do well in operating performance in the long term, see return to investors continuously increase, and actively fulfill social responsibilities.
Among the central SOE-controlled companies attending the forum, Zhongjin Irradiation, CRCChem, etc. realized rapid development through the registration-based IPO system of the ChiNext. TSC completed specialized integration of its Group segments through M&A restructuring. Tianma, CGT Group and Changan Automobile continuously raised funds to support R&D input and tackle technical bottleneck problems. CGN Power actively strengthened its main business and practiced the strategic goals of carbon neutrality and carbon peak. Hikvision and Easpring improved the modern enterprise system with Chinese characteristics by implementing multiple phases of stock ownership incentive plans and introducing active shareholders to optimize their corporate governance structures. As at the end of November 2022, there were 616 SOE-controlled companies listed on the SZSE market, with the total market capitalization of CNY 9.9 trillion, increasing by 50% and 271% respectively compared to those a decade ago. In particular, since the implementation of the Three-year Action Plan for the Reform of State-owned Enterprises (2020-2022), SZSE has issued the specific measures for putting in place Three-year Action Plan for the Reform of State-owned Enterprises (2020-2022), to fully support state-owned capital and enterprises deepening reform and pursuing innovation-oriented development. The SZSE-listed SOE-controlled companies have seen significant improvement in both structure and quality as well as in competitiveness, innovation capability, control, influence and risk resistance.
Among the private enterprises attending the forum, JHCC shared its experience in devoting itself wholly to growing and strengthening its capacitor business over the past sixty years and more. Wolwo Pharma, Honglu, S.C and others talked about the role of R&D and innovation in refining their main businesses. Companies such as Jereh Group and Zhe Fu shared their experience of making good and adequate use of the capital market as a tool to focus on main business and maintain stable growth in recent years. Zhongji Innolight, THCJ and Yahua Group talked about their M&A and transformation. China Tianying gave an introduction to its overseas development. As at the end of November 2022, there were 2,135 private enterprises listed on the SZSE market, with an aggregate capitalization of CNY 24.03 trillion, increasing by 135% and 543% respectively from a decade ago. The proportion of specialized, sophisticated, featured and novel enterprises recorded 22.58%, and quite a few enterprises have won the National Award for Science and Technology Progress and actively participated in national key science and technology projects. The SZSE market has especially done well in gathering emerging industries represented by high-end equipment, next-generation IT, biomedicine and new materials. A group of iconic enterprises of the new economy which are role models emerge have emerged on the market including CATL, BYD and MR. They have become innovation leaders in relevant fields in China and even in the world.
Officials of listed companies attending the forums said that SZSE has kept an open mind in recent years, carefully listened to market opinions, and actively responded to market concerns. SZSE has continuously perform regulation duties and other services with a human touch and supported enterprises seeking high-quality development, which have truly increased enterprises’ sense of gain. The listed companies attending the forums shared experiences in business operation and development, capital operation, corporate governance, value management, and put forward pertinent opinions and suggestions on how the capital market may further deepen reform, refine information disclosure policies, optimize the refinancing including M&A and reorganization regulations, improve the incentive and constraint mechanism, strengthen investor relations management, facilitate value discovery and delivering of central SOEs, support private enterprises focusing on main business and maintaining stable operation, etc.
SZSE officials said that working unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector and supporting the high-quality development of listed companies are SZSE’s important duties to earnestly implement the guiding principles of the 20th CPC National Congress and the Three-year Action Plan, and they are also SZSE’s important missions to build a “quality innovation capital center and world-class exchange”. SZSE will, according to the unified plan of CSRC, promote the regulation of and services for listed companies with a focus on three major tasks. First, we will improve basic market functions, refine the diverse and inclusive market mechanism for innovation, and build a listed company service system that covers the entire chain and the full process. Second, we will support the SOE reform and strengthen comprehensive effectiveness. Third, we will urge private enterprises to focus on main business, release vitality and seek sustained, healthy development and will help foster a group of high-quality SZSE-listed companies to better serve national strategies and economic and social development.
