Shenzhen Stock Exchange (“SZSE”) has forged comprehensive cooperation with the People’s Government of Changsha Municipality (“Changsha Municipal Government”) since last year in accordance with the guiding principles of the 19th CPC National Congress. On April 18, both sides entered into a cooperation framework agreement during a meeting to further discuss and push forward relevant work. Hu Henghua, Standing Committee of the CPC Hunan Provincial Committee and Changsha Party Secretary, Wang Jianjun, SZSE Deputy Secretary of Party Committee and General Manager, Hu Zhongxiong, Changsha Deputy Party Secretary, Mayor, and Secretary of the Party Working Committee of Xiangjiang New District, Hunan attended the event.
“SZSE is growing rapidly with strong capacities as one of the most important capital market in the world and an iconic institution of the reform and opening up in China,” expressed Secretary Hu Henghua during the meeting, “In recent years, SZSE made great efforts in advancing financial reforms, serving the real economy, preventing financial risks and promoting the sound development of the capital market, which are conducive to the sustainable development of the economy and finance. The framework agreement on strategic cooperation marks a good start of the all-round partnership between both sides. We hope that cooperation on technical, regulatory, human resources and service domains will be closer and mutually beneficial.” “Cooperation between SZSE and Changsha has been smooth as always,” said General Manager Wang Jianjun, “With the framework agreement signed, it is expected that more resources will be invested, innovative service mode created, communication enhanced, policies aligned, more training sessions held, and a mechanism for regular communication and cooperation for listed companies established to provide businesses in Changsha with greater access to the multi-layer capital market and to facilitate the development of the market.”
Changsha Municipal Government attaches much emphasis to company restructuring and listing, and a major focus of the Changsha Financial Reform and Development Strategy is to push forward corporate restructuring and listing and scale up direct investment and financing. With stronger policy guidance and more efforts made to encourage IPOs, the capital market of Changsha, provincial capital of Hunan and important central city in the middle stretch of Yangtze River, witnesses rapid development in recent years. In 2017, 12 companies in Changsha went public. By the end of March 2018, the city has 61 A-share listed Companies with a total capitalization of CNY660 billion, ranking the first in terms of number and capitalization among cities in central China. 46 out of the 61 companies, or 75.4%, were listed in the A-share market of SZSE.
The framework agreement opens a new chapter for the long-term close cooperation between both sides aimed at creating a sound direct investment and financing environment for businesses. As per the agreement, both parties shall conduct deeper and wider strategic cooperation in an all-round manner, with emphases on information exchanges, pre-listing nurturing and support, listing company refinancing and M&As, issuance of corporate bonds, asset-backed securities and fixed-income instruments, personnel training, etc.
