On April 27, 2017, the SSE-CAS Workshop for linking Sci-tech Enterprises and the Capital Market, co-sponsored by the Shanghai Stock Exchange (SSE) and Chinese Academy of Sciences Holdings Co., Ltd. (CAS Holdings), was held at the SSE trading floor. Attending the activity and delivering speeches were Wu Qing, SSE Chairman, Zhang Dongke, SSE Vice Chairman, and Suo Jishuan, General Manager of CAS Holdings. Other attendants included nearly 100 senior managers from 54 hi-tech enterprises with shares held by the CAS or research institutions affiliated to it.
On March 8, 2017, the CAS and the SSE signed the “Agreement on CAS-SSE Strategic Cooperation”, with an aim to provide all-round support in the capital market for the fast growth of hi-tech enterprises in the CAS system. The training course held this time was a specific move to implement the requirement in the Agreement that “the two sides should build the mechanism for information sharing and collaboration, strengthen training cooperation and co-propel sci-tech finance innovation”.
Wu said at the training course that the SSE attached high importance to the training and cooperation with the CAS. Currently, it is generally recognized in the market that the SSE is a quality blue-chip market. However, the SSE is also a multi-layer and hi-quality capital market supporting sci-tech enterprises’ growth, with small companies and large ones co-existing in the SSE market. Wu hoped that all the entrepreneurs present at the training course would actively give advice and discuss with the SSE on how to use the multi-layer market to support the growth of the CAS system, an influential leader in innovative development nationwide. Wu added that the SSE and the CAS would make full use of their edges, cooperate in innovation and contribute to propelling the national economy’s transformation and upgrading as well as the nation’s revitalization.
In his speech for the training course, Zhang introduced the practices of the SSE in recent years in terms of reform and development as well as supporting the growth of new-economy and hi-tech enterprises. He said that as of April 27, a total of 1,264 companies listed on the SSE included a lot of national economy pillar enterprises and industry leading enterprises, and more and more new-economy and hi-tech enterprises went public on the SSE. He added that as a main board in China’s multi-layer capital market, the SSE had been consistently taken serving the national economy and supporting the real economy as its duty. In particular, the SSE has highly stressed on supporting and fostering new-economy and hi-tech enterprises in recent years. With regard to equity financing, from 2014 to 2016, a total of 81 new-economy enterprises were listed on the SSE, accounting for 1/3 of the newly-listed companies on the SSE in the same period. As for creditor's rights financing, the SSE launched in 2016 the bond of innovation and start-up companies, an innovative product to meet these companies’ need of bond financing and solve the problem of difficult and high cost financing encountered by small and medium-sized enterprises.
Zhang said that the CAS is a sacred temple for natural scientific research in China. The sci-tech enterprises in the CAS system are the new force and vanguard in the development of new economies and high technologies in China. Some of these enterprises have presented many technological achievements with global influence, while some of theses achievements have already had the capacity for commercialized production. CAS enterprises will take the leading role during the critical period of national economic transformation and upgrading. The SSE has the obligation to serve the overall situation of reform and opening-up of China by installing the wing of capital to facilitate the growth of CAS enterprises.
Suo introduced the history, main businesses and operation of affiliated enterprises of CAS Holdings. According to Suo, the company has a batch of famous hi-tech enterprises involving industries such as the new generation of information technology, high-end equipment manufacturing, environmental protection and new materials, investment and modern services, and health care. Suo added that, in response to the General Secretary Xi Jinping's requirement of "taking lead in the leaping development of science and technology, the establishment of high-land for China's innovation talents, the establishment of China's high-level think tank for science and technology and the construction of top international scientific research institutions", the CAS formulated and implemented the "Plan of 'Taking Leading Actions'". As one of the key parts of the plan, CAS Holdings formulated and implemented the "Outlines of 'Innovation through Cooperation'" (the "Outlines" for short), which suggested the construction of "Canal System" from IP (sea of knowledge) to IPO (sea of capital), in order to facilitate the in-depth integration of technology and economy, realize leaping development of emerging industries, and promote the economic transformation and industrial structure upgrading in China with the strength of scientific research of the CAS as well as cooperation among the innovation chain, industry chain and capital chain. In addition to the in-depth implementation of relevant contents in the Agreement signed by the CAS and the SSE, the training also reflects the intrinsic requirements of the Outlines. It was hoped that the training would further promote orderly process of the strategic cooperation on both sides, help tech-innovation enterprises to facilitate reform and development with the aid of the capital market, as well as propel industry technology upgrading and financial-service technology innovation, in a bid to contribute to building China into a state with technological strengths in the world.
At the training course, relevant department heads of the SSE gave lessons to the attendants on contents such as the multi-layer blue-chip market of the SSE, corporate-bonds financing instruments, corporate governance and its latest development. Besides, senior experts from famous international accounting firms explained the overall planning and business on equity incentive for enterprises planning to go public. Through the one-day training course, the attendants had an in-depth understanding of and familiarity with relevant policies and rules of the capital market, as well as acquainted with the financing schemes related to restructuring and listing, merger and reorganization as well as issuance of corporate bonds. After the training course, the guests participated in the group discussions with relevant heads of the SSE on issues such as IPO and bond financing concerned by enterprises. As both sides further strengthened exchanges and understandings, the training course realized its expected purposes.