Shanghai Stock Exchange Governor Geng Liang: Promote Value Investing Concept, Back Inflow Of Long-term Funds- Shanghai Stock Exchange Is Studying Issuance Of SME Private Placement Bonds

At the meeting of the Board of Governors held recently by the Shanghai Stock Exchange (SSE), SSE Governor Geng Liang pointed out that the SSE should promote the concept of value investing and support the investment of long-term funds into the market. The meeting discussed the 2012 SSE work plan and focused on the research in the issues related to the issuance of SME private placement bonds on the exchange and the further promotion of the SSE's innovation work.

The meeting held that this year is critical for implementing the national "12th Five-Year Plan". The national economic and social development has put high expectation and more requirements on the development of the capital market. At present, the reform of China's capital market is being further deepened. To this end, in 2012, the SSE will give further play to the role as the main board market, enhance the ability of the SSE in serving the national economic development, better serve the scientific development and transformation of China's real economy, effectively prevent and timely resolve the potential risks of the financial market, and meet the demands of large enterprises and SMEs for investment and financing as well as the needs of the investors in wealth management, in a bid to build the SSE into a more mature market.

It is learnt that the general guideline for the SSE's work in 2012 is making steady progress and seeking innovation-driven development. According to this guideline, the work in 2012 will focus on "1+3", which means that on the basis of ensuring the safe and steady progress in all the work this year, efforts should be made to promote the construction of the blue chip market, develop the bond market and innovate the products. At present, the SSE is researching on promoting the development of SME private placement bonds and cross-border and cross-market ETFs, expanding the pilot of quote repurchase, improving the pilot of agreed repurchase, optimizing the block trading mechanism and making effective preparation for the pilot of refinancing.

Geng pointed out that the sound development of the capital market needs the formation of the mature and rational investment concepts. Over the years, the SSE has been vigorously promoting value investing and calling on the stock market to return to the theme of rational value investing. In the backdrop of the long-term stable and sound development of Chinese economy, only investing in the quality shares featuring steady and sound operation, excellent performance and conformity with the national industrial orientations is the rational choice for a mature investor. The SSE will also continue to strengthen market supervision, resolutely crack down on the activities against the laws and regulations in the market, maintain the "Openness, Justice and Fairness" on the market, vigorously carry out publicity and education of the integrity on the capital market to enhance the ethical standards of the capital market, and actively create an excellent climate for value investing. Besides, the SSE will support the long-term funds such as the pension funds investing in the market, so as to maintain the stable growth of the market.