On the morning of November 14, the Shanghai Stock Exchange (SSE) and the Pudong New Area Government signed a Memorandum of Strategic Cooperation and the Agreement of Jointly Building the Yangtze River Delta Capital Market Service Base (the Base for short). The Base locates in Zhangjiang Science City; Weng Zuliang, Standing Member of the CPC Shanghai Municipal Committee and Party Chief of Pudong, and Huang Hongyuan, Party Chief and Chairman of the SSE, unveiled its nameplate.
General Secretary Xi Jinping made a series of arrangements for Shanghai and its capital market construction one week ago when he was present at the 1st China International Import Exposition and made a tour of survey in Shanghai, pointing out the direction for the development of Shanghai in a new era and bringing about two major historical opportunities for its capital market construction. The first is to establish the sci-tech innovation board and piloting the registration system, support the construction of Shanghai into an international financial center and a science and technology innovation center, and keep optimizing the fundamental systems of the capital market; the second is to support the integrated development of the Yangtze River Delta region and upgrade it to a national strategy with the focus on implementing new development ideas, build a modern economic system, and facilitate the strengthened reform at a higher starting point and the opening-up at a higher level.
The construction of the Base with Pudong is a task of implementing General Secretary Xi Jinping’s requirement of fighting the three critical battles and a key measure of serving the national strategy of the Yangtze River Delta integration and building Shanghai into a science and technology innovation center. On one hand, clustered with high-end industries, Pudong has a solid sci-tech basis, making it a fertile soil for high-quality economic growth and showing its great potential for making use of the capital market. Till the end of October 2018, Pudong has 105 listed domestic companies with the IPO fund-raising of RMB167.2 billion, taking up 36% and 60% respectively in the total of Shanghai. In particular, 92 of them are listed on the SSE, accounting for 88%; and the total value of all listed companies is RMB2.43 trillion, accounting for 53% of the total of A-shares companies in Shanghai. On the other hand, the SSE has earnestly promoted the system and mechanism reform, kept expanding the opening-up and undertaken important mission in serving the real economy and the national reform and development. Till the end of October 2018, there are 1,446 listed companies on the SSE. The stock value totaled RMB28 trillion, the trading volume RMB34.6 trillion and the raised capital for the stock market RMB583.5 billion, ranking the 4th, the 5th and the 2nd respectively in the latest statistics of the World Federation of Exchanges.
The 1st activity was held after the inauguration ceremony. Representatives of the Pudong Government, the SSE, Shanghai Securities Regulatory Bureau, relevant departments of Pudong and tech-innovation enterprises took part in an exchange forum. Representatives of 36 hi-tech enterprises in Pudong actively put forward their common demands and gave ideas for the design of the capital market systems.
The Base, as an attempt for the capital market to serve the Yangtze River Delta region, will undoubtedly lay a solid foundation for the Pudong finance to march toward the Yangtze River Delta in such aspects as strengthening service functions, expanding service scope and enhancing the radiation capacity. The SSE will further cement the Base’s function of serving the capital market by closely centering on the cultivation of to-be-listed companies, the optimization of listed companies, the bond financing, the corporate training, the investor education, and the research and consultation. It will regularly invite governments of cities and areas in the Yangtze River Delta and entrepreneurs of all circles to “get close to the SSE” and build a new platform with shared information and close communication. Previously, the SSE has set up 5 service bases and workstations in the Yangtze River Delta region including Jiangsu and Zhejiang. Till the end of October 2018, 34 sessions of such activities as training class on listing policies, forum for to-be-listed enterprises, capital market forum and activity entitled getting close to the SSE have been organized in the 5 service stations in 2018, offering trainings to 998 enterprise times.
2018 is the 40th anniversary of China implementing the Reform and Opening-Up Policy, the 28th anniversary of the development and opening-up of Pudong, and also the 28th anniversary of the establishment of the capital market. In the new era, the SSE will continue to take root in the fertile land of Pudong, supporting its sci-tech innovation enterprises to develop in the capital market; it will closely grasp the opportunity of establishing the sci-tech innovation board and piloting the registration system, thus bringing more convenience for the listing and financing of enterprises, enhancing the adaptability and inclusiveness for special demands and system arrangements of sci-tech innovation enterprises, and increasing the effectiveness of serving sci-tech innovation enterprises. The SSE will strive to achieve the development goal of building a market with complete financing functions, solid fundamental systems, effective market regulation and effective protection of investors’ legitimate rights and interests.