On March 20, the Market Risk Committee of the SZSE Board of Directors held a symposium in order to thoroughly study and implement the spirit of the series of the important speeches delivered by General Secretary Xi Jinping on the economic and financial work and actively promote the implementation of the fundamental task of preventing and defusing risks. Representatives of the Board, the Special Committee, member companies, fund companies and SZSE attended the symposium. They conducted in-depth research and discussion on SZSE's recent market risk investigating, transaction supervision optimizing, basic system improving, whole-process transaction supervision strengthening and market risk preventing and resolving.
An SZSE officer said at the meeting that optimizing transaction supervision, strengthening system weaknesses and preventing market risks are SZSE's core tasks in 2019 and all of them are being progressed in an orderly manner. Optimizing transaction supervision is an important requirement of capital market construction and plays a decisive role in giving full play to the resource allocation of the market. Besides, it is an important basic task to fundamentally prevent and resolve market risks and a must-do task for the ChiNext reform. Due to the characteristics of listed companies, SZSE is relatively active in trading, and its stock index fluctuates greatly. Therefore, it is necessary to improve the differentiated trading supervision system to accurately combat market violations and trading behaviors that seriously disrupt the market order. SZSE will start from the whole process of trading, further clarify the supervision positioning, optimize various basic systems, improve the internal big data application, and vigorously promote the construction of scientific and technological supervision capabilities. Besides, it will work with member companies to ensure proper trading entry and exit. This year, SZSE will comprehensively upgrade the listed company supervision system, market monitoring system, market risk monitoring system and the fixed income system, so as to significantly improve the smart level of frontline supervision.
The participating organizations suggested that we should attach great importance to giving play to the functions of the capital market, actively promote the risk resolving of key areas such as stock pledge and bond default, continuously optimize basic trading systems, enrich the basic product system, increase the penalties for violations and form joint market risk prevention and control force. An SZSE officer said that SZSE will adhere to the market-oriented and law-based direction and base on the statutory duties of the exchange. We will also focus on risk prevention and development promotion, hold fast to the bottom line of supervision, grasp the supervision key points, and closely focus on preventing market resonance to avoid the butterfly effect. Meanwhile, we will further optimize transaction supervision and explore differentiated transaction supervision arrangements in line with the characteristics of SZSE listed companies and investors, so as to continuously enhance supervision adaptability, improve supervision transparency, and stabilize market expectations.
The SZSE officer also said that as a market organization, the exchange will work according to the requirements of the "Four Must and A Joint Force", get closer to the market, unite members, and exert the joint market force properly. Moreover, SZSE will use this important working method for the next market reform and maintain stable market operation, prevent market risks and promote the high-quality development of the capital market together with the majority of member and fund companies.
