Resolutions of the 12th General Meeting of SSE

24 Jul 2022

The 12th General Meeting of the Shanghai Stock Exchange (SSE) was held off-site from July 18 to 22, 2022. The Meeting was attended by 121 members, who voted on issues through online voting and gave feedback on the SSE's work. Three special members were present as non-voting delegates.

During the Meeting, members' representatives carefully considered the issues, actively exercised their rights, made various suggestions and fully performed their duties. The Meeting believed that, in strict accordance with relevant provisions of the Measures for the Administration of Stock Exchanges and the Articles of Association of the Shanghai Stock Exchange, it fully listened to the opinions of members' representatives, made democratic decisions through research and argumentation, and ensured members' rights to know, participate and supervise. Being highly practical and efficient, the Meeting was a great success. By bringing together members to jointly promote the quality development of SSE, it gathered strength for common development.

The 2021 Work Report of the 5th SSE Board was deliberated and approved. The Meeting fully affirmed the Board's work in 2021, holding that it conscientiously performed its statutory duties, actively made suggestions and played a crucial role in the governance mechanism of the SSE. Adhering to the Party's overall leadership over the SSE, the Board gave more priority to steadily promoting inspection and rectification, ensuring the smooth operation of the market, serving the real economy, deepening the pilot of registration system reform and accelerating digital transformation and construction, and achieved considerable results. The Meeting proposed that, as the 20th CPC National Congress will be held in the second half of 2022, the Board should always follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement General Secretary Xi Jinping's important instructions on the capital market, strictly implement the nine-character policy of "building institutions, non-interference and zero tolerance" and the working philosophy of "four respects and one synergy", and further pool its members' efforts to jointly build a "regulated, transparent, open, dynamic and resilient" capital market.

The 2021 Work Report of the President of SSE was deliberated and approved. The Meeting fully recognized the work of the President's Office, holding that it focused on "implementation" and achieved new results in deepening the reform of the registration system, maintaining the stable operation of the market, proactively integrating into the national development strategy, emphasizing risk prevention and control, and accelerating digital transformation. The Meeting suggested that the President's Office should continue to adhere to the general tone of seeking progress while maintaining stability, conscientiously implement the deployment of key work throughout the year of the China Securities Regulatory Commission (CSRC) System Work Conference and the requirements of the SSE's Party Committee, and strictly enforce and strengthen the SSE's daily management. Moreover, it should take inspection and rectification as an opportunity to promote quality development, do a good job in reform, development and stability, and speed up the construction of the SSE as a world-class exchange.

The 2021 Work Report of the 3rd Board of Supervisors of SSE was deliberated and approved. The Meeting fully affirmed the work of the Board of Supervisors in 2021, holding that it conscientiously fulfilled its supervisory duties, improved the SSE's internal management and facilitated the smooth and standardized operation of its businesses by strengthening political guidance, enhancing performance supervision, conducting strict financial and risk control and supervision, and integrating supervision with services. The Meeting proposed that the Board of Supervisors should earnestly implement the deployment of comprehensive and strict governance, meticulously carry out supervision to achieve results, address supervision difficulties, strengthen self-construction, improve its working mechanism and better perform its supervision and security functions.

The Report on 2021 Financial Final Accounts and 2022 Financial Budget of SSE was deliberated and approved. The Meeting considered that in 2021, the SSE improved its financial system, strengthened project and expenditure management, ensured fund safety and raised investment returns in strict accordance with the requirements of the CSRC. This brought about the continued growth of SSE's assets and equity and good operation. The financial budget for 2022 was prepared in a sound and prudent manner and was appropriate and feasible. While effectively controlling SSE's expenses, it also ensured the funding of key projects. The Meeting urged the SSE to constantly implement the requirement of "tightening up the budget", strengthen financial management, improve the collective research and decision-making mechanism of major project arrangements and important fund expenditure, and keep optimizing its financial management.

A proposal empowering the Board to consider and adopt budget and final accounts documents in certain circumstances was deliberated and approved. The Meeting held that there was uncertainty about the meeting time. In order to ensure that SSE fulfills its reporting obligations on the budget and final accounts documents in a timely manner in accordance with the law, with the CSRC's approval, the Board may deliberate and approve relevant documents under the Meeting's authorization and report to the CSRC. The Meeting pointed out that the reporting of annual financial budget and final accounts is a key aspect of the SSE's financial management. There should be a complete and sound internal decision-making process and timely reporting to the CSRC as required.

The Meeting noted that, in 2022, the SSE should, under the unified leadership of the Party Committee of the CSRC, continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the Sixth Plenary Session of the 19th CPC Central Committee, the Central Economic Work Conference and the upcoming 20th CPC National Congress, uphold the Party's overall leadership, firmly follow the path of financial development with Chinese characteristics, and consciously integrate all its work into the national development strategy and the overall economic and social development. It should work together with all its members to forge ahead, accelerate the construction of a world-class exchange, vigorously promote the quality development of the capital market, and take concrete actions to welcome the opening of the 20th CPC National Congress.